Alameda Health System will soon add a hospital to its network, as the Oakland, Calif.-based public health system will become the new owner of 93-bed San Leandro Hospital.
Alameda signed a nonbinding letter of intent with Sacramento, Calif.-based Sutter Health to acquire San Leandro Hospital. Under the deal, Sutter will transfer all assets of San Leandro Hospital to Alameda, and according to a Contra Costa Times report, Sutter will also chip in $22 million as a financial cushion. San Leandro Hospital has been under financial duress for several years now, and Alameda and Sutter have held negotiations on the hospital since November.
The transfer of ownership is contingent on Sutter and Alameda signing a definitive agreement by July 1. That agreement would then go to Alameda's board for approval. In a news release, Alameda officials said they expect the transaction will close this fall.
"This agreement is a significant milestone towards our objective of expanding our network of facilities that deliver care to all of our communities," Alameda Health System CEO Wright Lassiter III said in the release. "While we've made great progress with the signing of this letter of intent, there is still considerable work to be accomplished in bringing this arrangement to fruition."
Alameda signed a nonbinding letter of intent with Sacramento, Calif.-based Sutter Health to acquire San Leandro Hospital. Under the deal, Sutter will transfer all assets of San Leandro Hospital to Alameda, and according to a Contra Costa Times report, Sutter will also chip in $22 million as a financial cushion. San Leandro Hospital has been under financial duress for several years now, and Alameda and Sutter have held negotiations on the hospital since November.
The transfer of ownership is contingent on Sutter and Alameda signing a definitive agreement by July 1. That agreement would then go to Alameda's board for approval. In a news release, Alameda officials said they expect the transaction will close this fall.
"This agreement is a significant milestone towards our objective of expanding our network of facilities that deliver care to all of our communities," Alameda Health System CEO Wright Lassiter III said in the release. "While we've made great progress with the signing of this letter of intent, there is still considerable work to be accomplished in bringing this arrangement to fruition."
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