Financial terms were not disclosed. However, Banner will provide interim funding to CGRMC until the deal closes. Pending regulatory approvals, Banner and Regional Care Services Corp., the parent company of CGRMC, expect the acquisition to close this spring.
CGRMC has been in financial hot water as of late. According to CGRMC’s most recent audited financials, the hospital posted a $13.4 million operating loss in its 2013 fiscal year, which ended June 30. This compared to a razor-thin $86,706 operating profit in 2012.
CGRMC has suffered from large volumes of uncompensated care and declining volume. Total revenue at the hospital dropped 9.1 percent in 2013 to $100.2 million.
Banner operates 23 acute-care hospitals, with almost half of those in Arizona.
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