“They left us at the altar,” Mr. Issai told the San Francisco Business Times of Prime Healthcare’s decision to abandon the deal that would transfer ownership of six DCHS safety-net hospitals to Prime.
According to the report, Mr. Issai said he told Prem Reddy, MD, Prime Healthcare’s founder, chairman and CEO that he was making the wrong decision and that Attorney General Kamala Harris will probably never approve another one of his acquisitions in California again.
Yesterday, Ms. Harris said, “Prime is confirming many of the concerns heard at multiple community meetings that the continuity of vital healthcare services in these communities is not its priority,” according to the report. Meanwhile, Prime attributes the dissolution of the deal to the “unprecedented and onerous” conditions Ms. Harris placed on it.
Prime Healthcare now owes DCHS a breakup fee of $40 million, according to the report.
Moving forward, Mr. Issai said DCHS will have to consider possibly filing for Chapter 11 bankruptcy, conducting an immediate search for a new buyer and implementing reductions in services and staffing.
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