Ontario, Calif.-based for-profit hospital operator Prime Healthcare Services is preparing to buy bankrupt Bloomington, Ind.-based Monroe Hospital, as bidders at the hospital's bankruptcy auction were unsuccessful at beating Prime's offer to purchase the financially struggling facility, according to a Dow Jones report.
Monroe Hospital filed for bankruptcy reorganization in August. The Chapter 11 bankruptcy petition filed by the hospital stated the facility had less than $50 million in assets and more than $100 million in liabilities.
In addition, at the time the bankruptcy petition was filed, MonroeHospital owed $3.1 million to the Bloomington physician practice Premier Healthcare, $694,000 to Bloomington Anesthesiologists, $304,000 to the Indiana Hospital Association and $61,000 to the accounting firm Katz Sapper Miller.
To help the struggling facility, Prime will spend at least $2 million on the hospital's operations within the first three years of the sale, according to the report.
The purchase of Monroe Hospital is the third transaction Prime has entered into recently. At the beginning of October, Daughters of Charity Health System, a six hospital network in Los Altos Hills, Calif., agreed to sell Prime its six hospitals. Within one week of announcing the transaction with Daughters of Charity, Prime signed a definitive agreement to acquire hospitals and long-term care facilities from Kansas City, Mo.-based Carondelet Health, which is part of St. Louis-based Ascension.
More articles on healthcare industry transactions:
Maui Memorial Medical Center in partnership talks with Kaiser Permanente Hawaii, Hawaii Pacific Health
CHS to sell its interest in Carolina Pines Regional Medical Center to Capella Healthcare
Baptist Health South Florida signs affiliation agreement with Bethesda Health