Prime claimed the conditions imposed by Ms. Harris constituted “governmental overreach” and satisfied demands from Service Employees International Union-United Healthcare Workers West, a union that strongly opposed the transaction.
On Wednesday, U.S. District Judge Gonzalo Curiel in San Diego said the case failed to show Ms. Harris discriminated against Prime or that the former California AG, now a Democratic U.S. senator for California, did anything unlawful, according to the report.
The judge further described Ms. Harris’ actions as “discretionary state decision-making” and dismissed the lawsuit.
Daughters of Charity, a six-hospital network, agreed to sell its hospitals to Prime in October 2014. Ms. Harris approved the sale in February 2015 with strict conditions. These strict conditions included requiring Prime to keep the facilities operating for their existing purposes for a decade, among other requirements.
Prime ultimately decided against the purchase, and in July 2015, Daughters of Charity chose private investment firm BlueMountain Capital Management to manage and operate Daughters of Charity facilities and the system’s medical foundation.
Prime’s attorney, Mark Hardiman, told Becker’s Hospital Review via email, “We are currently reviewing the court’s ruling and considering our options for appeal.”
More articles on legal and regulatory issues:
Former director of finance charged with embezzling $1.5M from UNC hospital
8 latest healthcare industry lawsuits
Mother sues Portland hospital after she accidentally smothered her baby
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
