SAN FRANCISCO-The city will be facing a critical shortage of long-term nursing beds over the next two decades, according to a report by the Hospital Council of Northern and Central California. According to the report, there are 3,625 nursing facility beds in San Francisco. The city will need between 4,900 and 8,200 beds by the year 2020, based on how the population ages. The study suggested that some vacant acute-care beds be converted to nursing use, but that the numbers available would not meet the demand.
RENO, Nev.-Brookfield, Wis.-based Alternative Living Services said it has agreed to buy two freestanding assisted-living facilities in Reno for $13.3 million in cash and assumed debt. The company said the transaction is expected to close before the end of the month. Alternative Living said the seller is a private company that did not want its name or the names of the facilities disclosed. Executives said the acquisition marks the company's entry into the Nevada marketplace and gives it a foothold to further expand in the Reno and Las Vegas areas. The company now operates 90 residences in 15 states.
BAKERSFIELD, Calif.-Chicago-based National Surgery Centers said it has acquired Southwest Surgical Center in Bakersfield from a physician group. Terms of the acquisition weren't disclosed. National Surgery said the acquisition, its second in the market, will help it compete for managed-care contracts and develop new marketing programs. The company said the center, which opened in early 1996, is expected to bring in $2.5 million in annual revenues. National Surgery reported net revenues of $77.4 million in 1996. The company is the nation's largest operator of freestanding ambulatory surgery centers with a network of 33 outpatient centers in 12 states.
ALBUQUERQUE-Battered by the loss of a key contract, Prudential HealthCare has announced it will withdraw from the New Mexico market at the end of the year. The company had about 100,000 enrollees in the state at the beginning of the year, placing it among New Mexico's top managed-care companies. Spokeswoman Susanna S. Jakubik said Prudential's business in the state isn't particularly profitable and it recently lost in competitive bidding a large contract with the New Mexico Public Schools Insurance Authority, which represents about 50,000 enrollees. Prudential enrollees will retain their coverage until current contracts expire. Administration will be moved to a regional Prudential office out of state. The closing of Prudential's Albuquerque office on Dec. 31 will result in the loss of 145 jobs, although some employees will be offered positions elsewhere in the company.