Doctor sews up hospital deal
Byline: Darla Martin Tucker, "Business Press (San Bernardino, CA), August 28, 2006.
A fast-moving Victorville management firm is adding three Orange County hospitals to its portfolio of four hospitals, three of which were acquired in the past year.
Prime Healthcare Services Inc., chaired by cardiologist Prem Reddy, is buying the three hospitals from Nashville hospital chain Vanguard Health Systems Inc. for an undisclosed sum.
Officials announced the deal Aug. 16. The sale is expected to close by Sept. 30, said Lex Reddy, Prime Healthcare's chief executive officer. Prime Healthcare is purchasing 131-bed Huntington Beach Hospital, 141-bed La Palma Intercommunity Hospital and 219-bed West Anaheim Medical Center.
"Prime Healthcare Service has indicated that it intends to offer employment to all current hospital employees, maintain all three facilities as acute-care hospitals with core services including emergency care and continue historical levels of charity care," a Vanguard release said.
Vanguard owns and operates 19 acute care hospitals in Orange County, Chicago, Phoenix, San Antonio and Massacusetts. The company is selling the California facilities "to allocate resources to its existing core markets of Arizona, Illinois, Massachusetts and Texas," the release said.
Prime Healthcare pitched a proposal to buy Vanguard's Orange County facilities, Reddy said. "They were entering other markets in the country. We approached them to find out what their strategy is for California," he said.
Prime Healthcare targets small hospitals in need of improvements.
"Our goal is to invest in the infrastructure and work with the small community hospitals to keep them alive," Reddy said.
Prime Healthcare funded the latest hospital acquisitions internally, but plans to raise additional financing through real estate investment trust companies, Reddy said.
The Victorville firm will pursue any necessary renovations and purchase new equipment for the Orange County hospitals.
Prime Healthcare owns and operates Montclair Hospital Medical Center, Sherman Oaks Hospital and Grossman Burn Center, Chino Valley Medical Center and Desert Valley Hospital in Victorville.
The Victorville firm announced July 7 its acquisition of Doctors Hospital Medical Center of Montclair and plans to change the hospital's name to Montclair Hospital Medical Center.
The company acquired Sherman Oaks Hospital and the Grossman Burn Center, housed within the hospital, in January of this year.
Prime Healthcare acquired Chino Valley Medical Center in September 2005.
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THE DOCTOR IS IN
Prime Healthcare Services Inc. in Victorville owns and operates hospitals. To date its acquisitions and pending deals include:
Huntington Beach Hospital, sale set for Sept. 30.
La Palma Intercommunity Hospital, sale set for Sept. 30.
West Anaheim Medical Center, sale set for Sept. 30.
Montclair Hospital Medical Center, July 1, 2006.
Sherman Oaks Hospital/Grossman Burn Center, January 2006.
Chino Valley Medical Center, September 2005.
Desert Valley Hospital, opened 1994.