This past September, the 207-bed Fairmont filed for Chapter 11 bankruptcy, a move executives said was “necessary” before merging with another organization. In the aftermath, Fairmont CEO Robert Marquardt and CFO Dan Honerbrink resigned from their positions.
The deal between Fairmont and Alecto is pending approval from the bankruptcy court, and there will also be an auction for further bidding. Alecto owns and manages two other acute-care hospitals: St. Rose Hospital in Hayward, Calif., and Olympia Medical Center in Los Angeles.
Lex Reddy serves as Alecto’s CEO, while Roger Krissman is the company’s CFO. Both were previously CEO and CFO of Prime Healthcare Services, a for-profit hospital chain based in Ontario, Calif. Mr. Reddy resigned from his position in February 2012. At the time, Prime was under fire for allegedly inappropriate billing practices.
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