Daughters of Charity Health System — a six-hospital network based in Los Altos Hills, Calif. — has established this Friday as its deadline for final sale offers.
Earlier this year, DCHS announced it was soliciting acquisition proposals from all types of healthcare organizations. The health system has been struggling financially: In fiscal year 2013, it reported approximately $1 billion in total assets and posted a $90.7 million operating loss. Seven possible buyers have come forward so far. DCHS has not identified the potential buyers in accordance with confidentiality requirements.
DCHS is evaluating the bidders based on criteria such as the ability to invest in capital improvements and experience successfully running hospital systems. One the health system board selects a buyer, it will inform the state's attorney general to start the approval process.
Ontario, Calif.-based for-profit Prime Healthcare Services is rumored to be one of the suitors. Word of the potential deal spurred protests from union members with SEIU-United Healthcare Workers West and the California Nurses Association. Opponents of the acquisition have expressed concerns that Prime won't adequately serve low-income patients and could cut employee pay and benefits. They have also pointed out federal investigations into Prime's Medicare billing practices.
Prime has maintained it supports workers' rights and charity care. Additionally, last month, Prime filed a complaint against SEIU under the federal Racketeering Influenced and Corrupt Organizations Act, alleging that the defendants have conspired to extort, threaten and force Prime into a "neutrality agreement" that would let SEIU force all of the healthcare organization's workers into the union, according to a CNBC report.
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