This healthcare system may ring a bell as remember the situation at St. Johns Hospital in Santa Monica from last year? They still own that hospital and rumbles are still heard here and there and we never got the full story.
St. Johns Hospital Fires CEO And Several Board Members Fired By Email - Chan Soon-Shiong Puts Some of His Projects for the Hospital on Hold
Prime Healthcare, a for profit company has purchased two of their facilities in Kansas. Both hospitals were in financial dire position and that’s when Prime buys hospitals. The cash price was $54.3 million and the SCLHS will continue to absorb the balance of $121 million after the sale, so Prime got a good deal it sounds like. The ER Departments of both facilities are to be maintained for 5 years and that’s no problem for Prime as they create Cadillac ER rooms and where they make revenue and Prime will invest $10 million in upgrades. BD
Prime Healthcare Services, Ontario, Calif., has received the go-ahead from the Kansas attorney general's office to buy two hospitals in the state.
The for-profit chain, which is known for turning around struggling hospitals, reached a deal in January to acquire 196-bed Providence Medical Center, Kansas City, and 56-bed St. John Hospital, Leavenworth. The two Catholic hospitals are owned by SCL Health System, Denver.
While terms were not disclosed, a news release said Prime would invest at least $10 million toward capital and other projects over the next five years. The facilities' most recent tax documents show both posted an operating loss in 2010.
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