The attorney general’s decision comes a few months after Ontario, Calif.-based Prime Healthcare won a bid in bankruptcy court to acquire St. Francis Medical Center from bankrupt Verity Health System in El Segundo, Calif.
Under the agreement approved in bankruptcy court, Prime Healthcare will acquire St. Francis from Verity for a net consideration of $350 million. The $350 million includes $200 million in cash and $60 million for accounts receivable. It also includes a $47 million investment in capital improvements.
The attorney general’s office has been reviewing the transaction for several months and considered public input on the sale.
The attorney general’s approval has some conditions that Prime must meet. Prime said it is currently reviewing those conditions.
Pending a final ruling by the bankruptcy court, the transaction is expected to close this summer, according to Prime.
“We are honored to be selected to continue the St. Francis legacy and are working to review the conditions and finalize the sale as quickly as possible,” said Sunny Bhatia, MD, regional CEO and CMO of Prime Healthcare. “St. Francis’s mission is especially critical during this pandemic and we honor the service of all caregivers. Prime has already started investments at St. Francis that will enhance patient care as we commit to continue every service line, community benefit program, charity care and expand new services to the community.”
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