Prime Healthcare Services has forged a deal to acquire its third hospital in southeastern Pennsylvania, a facility being divested by Trinity Health.
The Ontario, Calif.-based chain has entered into an agreement to buy 126-bed Mercy Suburban Hospital, which is located in the Philadelphia suburb of East Norriton. Mercy Suburban is part of Mercy Health System, which became part of Trinity through its 2013 merger with Catholic Health East.
The hospital reported a loss of $5.4 million on revenue of $54.6 million for the six-month period ended Dec. 31, according to Trinity's most recent earnings report.
Prime already operates Lower Bucks Hospital in Bristol, Pa., and Roxborough Memorial Hospital in Philadelphia. After the acquisition closes, Mercy Suburban will cease operating as a Roman Catholic hospital and undergo a name change.
The deal includes $30 million for capital improvements over five years and is expected to take four to six months to close, pending regulatory approval. Prime also will acquire Mercy Suburban's physician practices and ambulatory-care sites, including Mercy Health Center at Plymouth Meeting Mall.
Prime is currently deciding whether to go ahead with its largest acquisition to date of Daughters of Charity Health System as it weighs a number of conditions from the California attorney general. But the controversy surrounding the high-profile transaction has not stopped the chain's rapid expansion across the country.
It's unclear when Prime will make its final decision on whether to pursue the Daughters deal.
Follow Beth Kutscher on Twitter: @MHbkutscher
