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Prime Healthcare, Daughters of Charity Health reportedly considering merger

Ontario, Calif.-based for-profit Prime Healthcare Services is rumored to be a potential buyer for Daughters of Charity Health System, a six-hospital network based in Los Altos Hills, Calif., according to a San Jose Mercury News report.

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.

Neither a Prime spokesman nor a spokeswoman for DCHS has confirmed Prime as a possible bidder, according to the report. However, word of the potential sale has spurred protests from union members with SEIU-United Healthcare Workers West and the California Nurses Association, according to the report. 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. In recent years, the company has dealt with several legal issues and allegations surrounding Medicare billing, including a whistle-blower suit filed earlier this year claiming Prime submitted $50 million in false claims for Medicare patient stays.

Prime Healthcare spokesman Edward Barrera told the News that although the company is being investigated regarding Medicare billing, it supports workers' rights and charity care.

 

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