Prime Healthcare plans to switch two Pennsylvania hospitals to nonprofit status.
The for-profit, privately held health system wants to transfer ownership for Philadelphia-based Roxborough Memorial Hospital and Bristol, Pennsylvania-based Lower Bucks Hospital to Prime Healthcare Foundation, its nonprofit that operates 14 hospitals in six states.
Related: Prime Healthcare completes $350 million purchase of 5 hospitals
The change, which is expected to take place this summer, would mean all of Prime's Pennsylvania hospitals operate as nonprofit organizations, Prime said in a news release Monday.
Nonprofit hospitals are not required to pay state or federal taxes with the understanding they will provide community benefits and charitable care in their service area. That arrangement continues to face scrutiny, and some say the community benefits do not match the tax breaks.
Ontario, California-based Prime acquired Roxborough Memorial and Lower Bucks in 2012. Roxborough has 131 beds, 249 physicians and more than 625 employees and volunteers. Lower Bucks has 150 beds, more than 225 physicians and approximately 650 employees and volunteers.
Late last year, the Philadelphia Inquirer reported Prime may be looking for a buyer for three unnamed hospitals that fit the description of Prime’s facilities. Prime declined to comment at the time.
Prime said in a statement Monday it is not engaged in any sales proceedings and the transition to nonprofit status will ensure the hospitals can continue to provide care amid possible state policy changes that would prohibit tax-paying entities from owning or managing hospitals.
Prime and the foundation operate 44 hospitals and more than 300 outpatient locations in 14 states.
