Prime Backs Out of Buying Hospitals

On Tuesday, Prime Healthcare withdrew its offer to buy six California safety-net hospitals from the Daughters of Charity Health System.

California Attorney General Kamala Harris (D) approved the sale last month but imposed a series of conditions on the deal Prime officials on Tuesday called "onerous and unprecedented."

"The conditions placed on the sale by the California Attorney General are so burdensome and restrictive that it would be impossible for Prime Healthcare -- or any buyer -- to make the changes needed to operate and save these hospitals," said Prime Chair Prem Reddy.

Harris said the hospitals provide crucial services for their communities and must be protected.

"The Daughters of Charity health facilities and the emergency, trauma and surgical services, among others that they provide, are essential to the communities who rely on them," Harris said. "Following an in-depth review by independent health care consultants, 44 hours of public meetings and review of 14,000 comments from concerned community members, I imposed conditions to ensure the continuity of these health care services, including that the most essential health care services remain in place for 10 years. In December of last year, the independent health care consultants recommended the 10-year conditions and Prime was notified at that time. Now, after two-and-a-half months, Prime is saying these conditions are a deal breaker."

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