In March 2020, Prisma Health entered into an agreement to acquire KershawHealth, a single-hospital system based in Camden, S.C., and Providence Health, a two-hospital system based in Columbia, S.C., from Brentwood, Tenn.-based LifePoint Health
Prisma Health planned to complete the transaction by amending its existing certificate of public advantage. The certificate of public advantage can shield deals from federal oversight in exchange for state oversight if the organization can prove the transaction’s benefits outweigh any disadvantages.
However, the amended certificate of public advantage prompted a legal challenge from Lexington Medical Center in West Columbia, S.C., which argued the certificate cannot be amended.
Recently, the South Carolina Administrative Law Court ruled that Prisma Health’s sale may not be able to be completed with the amended certificate and may not qualify for federal antitrust immunity.
Prisma has appealed the decision and is also seeking an opinion from the South Carolina Supreme Court to speed the process.
Prisma said that if the deal doesn’t get closed by March 2, it loses the deal and $10 million in down payments, according to the report.
More articles on healthcare industry transactions:
Ascension to sell 7 Wisconsin hospitals, 21 clinics to Aspirus
HCA plans to acquire Georgia hospital for $73M
CommonSpirit to sell 14 hospitals to Essentia Health
