A U.S. bankruptcy court has approved an agreement for Prime Healthcare Foundation, the nonprofit affiliate of Ontario, Calif.-based Prime Healthcare Services, to purchase Riverdale, Ga.-based Southern Regional Medical Center, which filed for bankruptcy protection earlier this year.
In July, Prime signed a letter of intent to acquire all assets of Southern Regional and to invest at least $50 million in capital improvements in the hospital over the next five years.
"We are grateful for Prime Healthcare's commitments to invest in Southern Regional," said Jim Adams, the hospital's board chairman.
With the asset purchase agreement approved by the bankruptcy court, Prime will operate the hospital under a management services agreement until the sale is completed in early December. The Georgia Attorney General's office and the Georgia Department of Community Health still must review the sale.
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