Hawaii Medical Center announced in bankruptcy court that it could not reach a sale price for its two hospitals with Ontario, Calif.-based Prime Healthcare Services, forcing closure of both facilities, according to a Hawaii News Now report.
HMC, which has two hospitals in Honolulu and Ewa Beach, filed for Chapter 11 bankruptcy in June and transferred ownership of its hospitals to St. Francis Healthcare System of Hawaii in Honolulu. Under that reorganization plan, MidCap Financial would provide new financing for the health system's operation once it emerged from bankruptcy.
However, in November Prime replaced MidCap Financial as HMC's lender and has since been working with HMC on a possible sale transaction. According to the report, Prime offered $25 million, far below St. Francis's $40 million price range. As a result, HMC announced it would close both hospitals within the next two to four weeks.
HMC, which has two hospitals in Honolulu and Ewa Beach, filed for Chapter 11 bankruptcy in June and transferred ownership of its hospitals to St. Francis Healthcare System of Hawaii in Honolulu. Under that reorganization plan, MidCap Financial would provide new financing for the health system's operation once it emerged from bankruptcy.
However, in November Prime replaced MidCap Financial as HMC's lender and has since been working with HMC on a possible sale transaction. According to the report, Prime offered $25 million, far below St. Francis's $40 million price range. As a result, HMC announced it would close both hospitals within the next two to four weeks.
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