Sale of Not-for-Profit Hospital Gets Green Light
Attorney General Bill Lockyer on Monday approved the sale of not-for-profit Paradise Valley Hospital in National City to for-profit Prime Healthcare Services, the San Diego Union-Tribune reports. The $30 million deal is expected to be completed by Thursday.
The attorney general's office placed more than a dozen conditions on the sale, including requirements that Prime Healthcare:
- Continue caring for Medicare and Medi-Cal patients;
- Operate beds for psychiatric patients;
- Spend at least $2.5 million annually on charity care during the next five years;
- Spend at least $1.2 annually on community services; and
- Maintain operations at two outpatient clinics for seniors and families.
An investor group of physicians led by former hospital CEO Fred Harder offered a rival bid of $40 million to purchase the hospital. The hospital's owner, Adventist Health, rejected the bid, saying that the investors lacked financial support and that the offer would have prolonged losses at the hospital for Adventist, which were almost $2 million monthly.
James Humes, chief deputy attorney general, said the financing for the rival bid was "still contingent on approval." He added, "[The group] didn't have the money. It was full of problems."
Humes said there was a "real possibility" that the hospital would have closed "if this transfer was not approved" (Darcé/Clark, San Diego Union-Tribune, 2/27).
