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Daughters of Charity Health System submits sale application to Attorney General

Daughters of Charity Health System — a six-hospital network based in Los Altos Hills, Calif. — has submitted an application to the California Attorney General requesting consent to transfer control of its hospitals to Ontario, Calif.-based Prime Healthcare Services.

The application includes the definitive agreement DCHS and Prime entered into. Under the agreement, Prime has committed to invest at least $150 million into DCHS facilities.

"Our sale to Prime will strengthen the DCHS health facilities by bringing them into a large, well-resourced hospital system offering economies of scale, turn-around experience and committed capital," said Robert Issai, president and CEO of DCHS.

Since DCHS announced it would sell its facilities to Prime, the transaction has been opposed by SEIU-United Healthcare Workers West. The union is even backing a class-action lawsuit against DCHS that alleges violations of federal pension law.

More articles on healthcare industry transactions:

Lancaster General Health, UPenn Health System exploring stronger ties
Mercy Health System, Rockford Health System to merge

 

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