Prime Healthcare is located in California and has made business of purchasing hospitals in financial woes and of course the alternative of having the hospital close is not a good one either. The latest is Garden City Hospital in Michigan. $55 million in bond debt will be assumed by Prime that will protect jobs and pensions of the hospital employees. Garden City has been looking for a sale for quite a while now. We do have a big case of “hospital inequality” that nobody wants to really talk about and the link below has addition information on that topic.
Prime Healthcare Continues To Purchase “Desperate Hospitals” As Bids Become Available for Those That Are Cash Strapped - “Hospital Inequality” A Topic That Nobody Wants To Discuss
Current employees will have to apply to work at Prime which states they will offer employment to them, and of course that’s a win-win on both sides and the current “charity care provisions” are said to remain unchanged or equal to current policies. Also Prime has agreed to not sell the hospital for a minimum of 5 years. Prime now owns 27 hospitals across the country. When Prime initially started they had some policies in California of not signing contracts with insurers but due to current economic times that has changed as well. I remember when they purchased Huntington Beach hospital and how just the outside parking lot observations changed. Before the purchase it was busy, you could not find a parking spot and afterwards you could roll bowling balls through the lot and even when I drive by today, it’s a little busier but not the once “busy” hospital that it was and some of the prior services the hospital provided are no longer available. BD
Garden City Hospital has a new family with the announcement of Prime Healthcare Services this morning that it has completed the acquisition of the 323-bed facility.
Under the terms of the agreement, Prime Healthcare will invest at least $35 million in the hospital’s infrastructure and capital improvements beyond routine replacements and additions. It will also continue to provide charity care at the existing level or better, as well as maintain a local governing board.
“We welcome Garden City Hospital into the Prime Healthcare family and intend to help continue its critical role in providing a healthcare safety net in Garden City and the surrounding communities,” said Dr. Prem Reddy, chairman, president and CEO of Prime Healthcare Services. “Prime Healthcare’s motto is ‘Saving Hospitals, Saving Jobs and Saving Lives,’ and we are confident the hospital will emerge stronger from this transition.”