The SEIU-United Healthcare Workers West has sent a letter to the California Department of Public Health asking the state to stop Prime Healthcare Services from continuing to operate Alvarado Hospital in San Diego, Calif., arguing the hospital operator did not apply for a change of ownership after acquiring the hospital from Plymouth Health in November.
SEIU-UHWW called the failure to obtain the change of ownership an "egregious and deliberate attempt to circumvent the efforts of the California Department of Public Health," according to the letter.
The CDPH previously announced it would not approve any change of ownership applications by Prime until an investigation into alleged fraudulent billing for phony septicemia infections at the hospital is completed. Prime Healthcare denies the fraudulent billing accusation.
In a letter to the director of the California Department of Public Health, Prime's general counsel Michael J. Sarrao responded that SEIU's most recent allegations "have no merit and are nothing more than SEIU's ongoing campaign to extort concessions from Prime Healthcare Services in contract negotiations." Prime argues that a "change of information" rather than a "change of ownership" occurred in regards to the transfer of "membership interests" in Alvarado from Plymouth to Prime as "Alvarado Hospital" is the licensee of the hospital and remains so.
Read the SEIU-UHWW letter about Prime Healthcare Service's Alvarado Hospital (pdf).
Read Prime's letter to the California Department of Public Health (pdf).
Read more coverage on Prime Healthcare Services:
- Prime Healthcare Acquires Alvarado Hospital in San Diego
- California's Prime Healthcare Services Says Union Instigated Fraud Probe
SEIU-UHWW called the failure to obtain the change of ownership an "egregious and deliberate attempt to circumvent the efforts of the California Department of Public Health," according to the letter.
The CDPH previously announced it would not approve any change of ownership applications by Prime until an investigation into alleged fraudulent billing for phony septicemia infections at the hospital is completed. Prime Healthcare denies the fraudulent billing accusation.
In a letter to the director of the California Department of Public Health, Prime's general counsel Michael J. Sarrao responded that SEIU's most recent allegations "have no merit and are nothing more than SEIU's ongoing campaign to extort concessions from Prime Healthcare Services in contract negotiations." Prime argues that a "change of information" rather than a "change of ownership" occurred in regards to the transfer of "membership interests" in Alvarado from Plymouth to Prime as "Alvarado Hospital" is the licensee of the hospital and remains so.
Read the SEIU-UHWW letter about Prime Healthcare Service's Alvarado Hospital (pdf).
Read Prime's letter to the California Department of Public Health (pdf).
Read more coverage on Prime Healthcare Services:
- Prime Healthcare Acquires Alvarado Hospital in San Diego
- California's Prime Healthcare Services Says Union Instigated Fraud Probe