Fast-growing Prime Healthcare closes four deals

Prime Healthcare announced it completed its acquisition of a Florida hospital, and its not-for-profit affiliate acquired another three hospitals across three states.

The Ontario, Calif.-based chain has rapidly expanded and recently lined up $700 million in financing to fund more acquisitions. Its latest addition is Lehigh Regional Medical Center in Leigh Acres, Fla., an 88-bed hospital purchased from Community Health Systems.

The Prime Healthcare Foundation, which was founded by Prime Healthcare CEO Dr. Prem Reddy, acquired the Southern Regional Medical Center in Riverdale, Ga., which entered bankruptcy last June. The not-for-profit also acquired stand-alone hospital River Valley Health Partners in East Liverpool, Ohio, and the Suburban Community Hospital, East Norriton, Pa., from Trinity Health.

The Pennsylvania hospital is among several that Livonia, Mich.-based Trinity is has divested since its 2013 merger with Catholic Health East.

Terms of the Prime deals were not disclosed, but the company said it invest $80 million in the four hospitals.

Combined, the company and its not-for-profit affiliate own 42 hospitals across 14 states. The not-for-profit foundation owns 11 of them, including a California hospital donated this month from its for-profit parent.

Melanie Evans

Melanie Evans writes about healthcare finance, hospital management and governance issues. She has been part of the Modern Healthcare staff since 2004. Earlier in her career she covered healthcare and not-for-profits as a reporter at the Duluth (Minn.) News Tribune. She received a bachelor's degree in international relations from Boston University and a bachelor's in journalism from the University of Minnesota.

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