Providence, R.I.-based CharterCare Health Partners, the parent organization of two Rhode Island hospitals, will soon become part of a health system all the way across the country, as it has signed a letter of intent to merge with Santa Ana, Calif.-based Prospect Medical Holdings.
Under the proposed deal, CCHP and PMH will create a joint venture, though the groups did not state how big PMH's stake would be. Other financial details of the transaction were not released, though PMH will make "significant capital contributions" into a new company to be owned by both parties.
CCHP and PMH will now work to finalize a definitive agreement. The Rhode Island attorney general's office and the state department of health still must approve the deal as well.
CCHP's two hospitals are Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence. PMH, a for-profit entity backed by Los Angeles-based private equity firm Leonard Green & Partners, oversees two subsidiary health systems: Alta Hospitals System, a five-hospital system based in Los Angeles, and Nix Hospitals System, a one-hospital system based in San Antonio.
Under the proposed deal, CCHP and PMH will create a joint venture, though the groups did not state how big PMH's stake would be. Other financial details of the transaction were not released, though PMH will make "significant capital contributions" into a new company to be owned by both parties.
CCHP and PMH will now work to finalize a definitive agreement. The Rhode Island attorney general's office and the state department of health still must approve the deal as well.
CCHP's two hospitals are Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence. PMH, a for-profit entity backed by Los Angeles-based private equity firm Leonard Green & Partners, oversees two subsidiary health systems: Alta Hospitals System, a five-hospital system based in Los Angeles, and Nix Hospitals System, a one-hospital system based in San Antonio.
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