Attorney General Xavier Becerra noted that his approval of the sale of St. Francis to Prime Healthcare “protect(s) access to care for the Los Angeles communities served” by St. Francis. He further noted, “The COVID-19 public health crisis has brought home the importance of having access to lifesaving hospital care nearby in our communities. St. Francis Medical Center is not just an asset, it is an indispensable neighbor, it is the workers who serve the patients, and the doctors who save lives. We conditionally approve this sale to keep it that way.”

“St. Francis Medical Center and Prime Healthcare are both top tier health care institutions, and the completion of the sale cements a win-win for patients, employees, and the community,” stated St. Francis Board Chair Charles (Chad) Druten, Jr. “As a member of the Prime Healthcare family, St. Francis has a strong new network of systems and resources that will enable it to elevate and expand services and maintain its prominence as a place that proudly delivers outstanding, state-of-the-art, compassionate care.”

The bankruptcy judge preliminarily approved the Asset Purchase Agreement (APA) for the sale from Verity Health to Prime in early April. Under the agreement, Prime acquired St. Francis for a net consideration of over $350 million, including over $250 million cash. In addition, Prime has committed to invest $47 million in capital improvements. Prime has already begun executing on its commitment by installing best-in-class technology and systems, such as Epic, an integrated electronic medical records platform, Omnicell systems for automated medication dispensing, and new interventional radiology and cardiology capabilities, all of which will improve the patient and caregiver experience.

Prime’s purchase bid was the highest, best and only qualified bid received by the Bankruptcy Court, which praised the bid for securing the mission of St. Francis, preserving jobs that would otherwise be lost and saving a hospital that was insolvent. Prime not only offered the highest purchase price, but also committed to meeting and exceeding mandates for healthcare access and services. Prime committed to maintaining all essential care, trauma care, charity care and community benefit programs, while continuing St. Francis’s long-standing mission of service. Prime plans to expand service lines based on community need.

“With the acquisition of St. Francis Medical Center by Prime Healthcare, our community can be confident that St. Francis Medical Center will always be available for them when they need us,” said Maxine Anderson, MD, St. Francis Chief of Staff. “Prime has already substantially completed the installation of a new medical record system and will continue to offer comprehensive healthcare services that include outpatient services to basic emergency services, women’s services, stroke/STEMI services, trauma services, and more. We look forward to continuing these key services with Prime Healthcare’s acquisition and leadership.”

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