by John R. Fischer
, Senior Reporter | June 02, 2023
For-profit American Healthcare Systems, headquartered in Los Angeles, is set to acquire ProMedica Coldwater Regional Hospital, a Michigan-based hospital of not-for-profit ProMedica, as part of an asset purchase agreement.
Plagued by financial challenges, ProMedica put the hospital on the market prior to the pandemic, but withdrew it in 2020 to help its community during the outbreak, reported The Daily Reporter
In April, ProMedica reported an operating loss of nearly $400 million for 2022, compared to $141 million in 2021, according to federal filings.
“The pandemic and its fallout, including staffing shortages and rapidly rising expenses, have further strained finances at hospitals across the country — and Coldwater Regional Hospital has been no exception,” said Alan Sattler, president of ProMedica Coldwater Regional Hospital.
American Healthcare Systems says it plans to save the hospital by maintaining or expanding its services. Started in 2021, the company is a nationwide system that specializes in acquiring and improving underperforming health systems with its attendant healthcare operations.
Earlier in May, American Health Systems acquired Vista Medical Center East in Waukegan, Illinois, from Tennessee-based Quorum Health Corp. It also manages Randolph Health Hospital in Asheboro, North Carolina; the South City Hospital in St. Louis; and Gateway Regional Medical Center in Granite City, Illinois, according to Lake County News-Sun
ProMedica will continue to fully support hospital officials during the transaction phase.
The deal is subject to regulatory approval, and expected to be completed in four to six months.
American Healthcare Systems did not respond to HCB News in time for comment.