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Prime Healthcare had the highest and best bid for St. Francis with an offer that provides over $350 million as the sale process enters final stages.Prime has committed to continuing St. Francis mission, service lines, trauma care, charity care, community benefit programs, and service to the underserved.Prime Healthcare immediately begins the implementation of state-of-the-art technology and systems as part of $47 million capital infusion for technology, infrastructure, equipment, and system upgrades.Verity Health and Prime Healthcare value the heroic work of staff and engaged in good faith negotiations with all unions.LOS ANGELES (June 1, 2020) – Prime Healthcare and Verity Health today highlighted their continued efforts to preserve the legacy and health care mission of St. Francis Medical Center.
Since Prime was chosen as the top bidder by the U.S. Bankruptcy Court, millions of dollars have already been invested in state-of-the-art technology improvements—reflecting a commitment to preserving access to care and improving quality for Lynwood and surrounding Los Angeles communities.Prime, which has earned a national reputation for turning around financially struggling hospitals and saving their community missions, had the highest and best bid approved for St. Francis, in Lynwood, CA., by the U.S. Bankruptcy Court for the Central District of California, with an offer of net consideration in excess of $350 million and also provides for $47 million in much-needed capital improvements.As part of its asset purchase agreement, Prime has 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.
As part of the transition, Prime has already begun executing on its commitment to 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.As one of the nation’s leading hospital systems serving 2.6 million patients annually, Prime is committed to quality and patient-centered care, earning numerous awards time and time again.
“Given Verity’s ongoing operating losses of nearly $450,000 daily and the uncertain operating environments associated with this pandemic, the importance of St. Francis being sold to a stable operator cannot be understated.
Prime has also already demonstrated a level of unique and exceptional talent and dedication to the St. Francis mission which will provide stability.”Prime’s offer provides a net consideration of over $350 million.
Prime has committed to invest $47 million in capital improvements and has agreed to let Verity keep over $100 million in estimated Medicaid Quality Assurance Fee payments.
