Prime Healthcare Services, Victorville, Calif., said it will take over the operations of Shasta Regional Medical Center, Redding, Calif., effective Saturday, from Hospital Partners of America, which filed for bankruptcy protection last month. Prime said it agreed with the owner of the hospitals real estate, Medical Properties Trust, Birmingham, Ala., to take over Shasta Regionals operations to stave off its closing.
HPA, Charlotte, N.C., closed a Houston hospital in June and said then that it was looking to sell its stake in Shasta Regionals operations; Prime said in a news release that HPA owns an 82% stake in the operations. Prime owns and operates 12 hospitals in California, all of which were financially distressed when the company bought them. HPA holds stakes in three other hospitals and has a management contract for another hospital. -- by Vince Galloro
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