Because of its focus on ailing hospitals, Prime is an often-controversial entrant in a market—seen as either a turnaround architect or a threat to the community because of its aggressive cost-cutting measures.
A news release from Kansas Attorney General Derek Schmidt noted that the majority of attendees at a recent public hearing expressed support for the merger, while those who didn't cited concerns that Prime wouldn't maintain charity care or seek community input.
The release also alluded to “one person who traveled from California to testify” and “raised concerns about some of the new owner's billing practices and other conduct at hospitals it owns in other states.”
But Schmidt noted that he would take no action to block the sale after Prime entered into a legally binding agreement to continue charitable care over at least the next five years as well as create a formal community advisory board. He added that the information from the California testimony would be relayed to “officials who oversee medical billing by providers in Kansas, including the Medicaid Fraud Control Unit in his office.”
The release also said Schmidt found SCL's testimony that it was not financially capable of operating the hospitals—and that they would likely close without a capital injection—to be particularly compelling.
