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 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 months 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.
