M&A Roundup: Prime, Tenet, BIDMC Announce Deals
Prime Healthcare Services to Buy Hospitals in NJ, KS
Ontario, CA-based Prime Healthcare Services has announced two separate acquisitions of financially troubled hospitals in New Jersey and Kansas. Financial terms of the deals were not disclosed.
In Kansas, Prime has agreed to buy Providence Medical Center in Kansas City, and Saint John Hospital in Leavenworth, from SCL Health System, a faith-based, nonprofit system. Under the terms of the deal, Prime will make "significant investments" to financially stabilize the hospitals and allow them to maintain current levels of charity care.
The hospitals will maintain their current acute care and emergency department services for at least five years, invest $10 million toward capital improvements, and employment offers will be extended to "substantially all employees."
The deal calls for Prime to hire all current St. Mary's Hospital employees. Prime will invest $30 million in capital improvements over the next five years beyond routine replacements and additions. Prime will maintain a local governing board. The APA also calls for Prime to assume the existing Collective Bargaining Agreement with JNESO which represents nurses and clinical employees.