Ontario, Calif.-based Prime Healthcare Foundation, the nonprofit arm of Prime Healthcare Services, has acquired Mercy Suburban Hospital in East Norriton, Pa., for $25 million, according to The Inquirer.
Prime entered an agreement to purchase the hospital last March, but there were a few changes to the deal in recent months. Originally, Prime Healthcare Services was going to acquire the hospital, instead of its tax-exempt affiliate. The purchase price also fell by $10 million.
According to The Inquirer, aspects of the transaction were restructured late last year due to Mercy Suburban's deteriorating financial performance. The hospital suffered $49 million in losses in fiscal years 2013 and 2014.
In exchange for the lower price, Prime upped its five-year capital commitment to the hospital to $40 million from $30 million, according to the report.
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