Mercy Health System of Southeastern Pennsylvania sold its
Mercy Suburban Hospital for $25 million, $10 million less than originally
planned, a court filing last month showed.
The sale, announced nearly a year ago with an expected
completion date in September, finally closed Feb. 1.
The price is not the only thing that changed.
The buyer did, too.
Taking the place of a for-profit subsidiary of Prime
Healthcare Services Inc. was Prime Healthcare Foundation Inc., a tax-exempt affiliate
of Prime.
Sometime before Dec. 31, Prime approached Mercy and
Mercy's owner, Trinity Health, in bid to restructure certain aspects of the
deal "given certain changed circumstances as to Prime and [Mercy Suburban
Hospital's] deteriorating financial performance," a Jan. 29 petition in
Montgomery County Orphans' Court said.
In exchange for the lower price, Prime agreed to increase
its five-year capital commitment to the hospital, now called Suburban Community
Hospital, to $40 million from $30 million, the filing said.
Prime officials did not respond to requests for
information about why the Prime foundation bought the hospital instead of the
for-profit company.
Prime Healthcare Foundation owned eight hospitals in
Califorinia and Texas before buying Mercy Surburban. It had total revenue of
$463 million in 2014 and operating income of $73 million in 2014, according to
an Orphans' Court filing.
Source: Philly.com
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