Major Milestone Toward Completion of Sale to Prime Healthcare
Lynwood, Calif., July 18, 2020 (GLOBE NEWSWIRE) -- Verity Health and St. Francis Medical Center announced today that the California Attorney General has conditionally approved Verity Health’s application to transfer ownership of St. Francis Medical Center to Prime Healthcare.
“Achieving this milestone is an important step in ensuring Prime is able to preserve the St. Francis mission for the benefit of associates, members of the medical staff and most importantly the patients and Southeast Los Angeles community that have relied on St. Francis for 75 years,” said Rich Adcock, CEO of Verity Health.
In early April, the U.S. Bankruptcy Court for the Central District of California in Los Angeles approved the Asset Purchase Agreement (APA) for the sale of St. Francis Medical Center to Prime. Under the agreement, Prime will acquire St. Francis for a net consideration of over $350 million, including a $200 million base cash price and $60 million for accounts receivable. In addition, Prime has committed to invest $47 million in capital improvements.
As part of its APA, Prime committed to meeting and exceeding mandates for access and services, including maintaining all essential care, trauma care, and community benefit programs, while continuing St. Francis’s important mission of service. In addition, Prime plans to expand service lines based on community needs. As part of the transition, Prime has already begun executing on its commitment to $47 million in capital investment by installing best-in-class technology and systems such as Epic, as an integrated electronic medical record, Omnicell systems for automated medication dispensing, and new interventional radiology and cardiology capability, all of which will serve to improve quality and the patient and caregiver experience at St. Francis.
“We are honored to be selected to continue the St. Francis legacy and will continue to collaborate with the Attorney General’s office while we examine the recommended conditions and work to finalize the sale,” said Sunny Bhatia, MD, CEO, Region I and Chief Medical Officer of Prime Healthcare. “St. Francis’s mission is especially critical during this pandemic and Prime has already started investments that will optimize patient care at St. Francis. We recognize the tremendous contributions of our staff at St. Francis, along with those across the nation who are tirelessly serving on the frontlines.”
The Attorney General’s office conducted an exhaustive review of the transaction for the past several months and considered public input on the proposed transaction. The Attorney General’s approval includes conditions for the sale which Prime is currently reviewing. Pending a final ruling by the Bankruptcy Court, the transaction is expected to be completed this summer.
About Prime Healthcare
Prime is one of the nation’s leading health systems with 45 hospitals and more than 300 outpatient locations in 14 states. Prime serves over 600 communities, employs 35,000 staff and provides 2.6 million patient visits annually. In California alone, Prime operates 15 hospitals, employs more than 10,000 people, and serves tens of thousands of patients annually. Prime is nationally recognized for award-winning quality care and has been named a Top 10 and Top 15 Health System by IBM Watson. Its hospitals have also been named among the nation’s best as ”100 Top hospitals” 53 times and have received more Patient Safety Excellence Awards from Healthgrades than any other health system in the past five years.
About Verity Health System
Verity Health System operates St. Francis Medical Center in Los Angeles County, as well as Seton Medical Center and Seton Coastside, both in San Mateo County. Verity previously owned and operated several California-based hospitals including O’Connor Hospital in San Jose, St. Louise Regional Hospital in Gilroy, and St. Vincent Medical Center in Los Angeles County.