Thursday, February 4, 2016

$35M sale of Montco hospital is completed



Prime Healthcare Services has completed its twice-delayed $35 million acquisition of Mercy Suburban Hospital.

The proposed sale of the East Norriton, Pa., hospital, previously part of the Conshohocken-based Mercy Health System, was first announced 11 months ago. The deal received the necessary regulatory approvals by the beginning of Sepember, but the closing date was pushed back twice while the two organizations worked out operational issues connected to certain back-office systems shared by Mercy Suburban and other Mercy medical centers in the region.


“That has created some complexities and delays,” said Peter Adamo, Prime Healthcare’s regional CEO for the Philadelphia market, in an interview last month. “We’ve had to restructure some of the original understandings.”

As part of the deal, Prime Healthcare — which already operates Roxborough Memorial Hospital and Lower Bucks Hospital in Bristol, Pa., in this market — agreed to maintain Mercy Suburban's charity care policies, keep substantially all of the hospital’s 676 employees, and invest $30 million in capital improvements at the hospital.

The deal for Mercy Suburban, which is now being operated as Suburban Community Hospital, was one of four acquisitions completed by Prime Healthcare of Ontario, Calif., this week. The privately owned, for-profit hospital management company also finalized deals for Lehigh Regional Medical Center in Florida, Southern Regional Medical Center in Georgia and River Valley Health Partners in Ohio.

Prime Healthcare now operates 42 hospitals in 14 states with nearly 42,000 employees and physicians.

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