Prime Healthcare Services, based in Ontario, Calif., has agreed to acquire Garden City (Mich.) Hospital.
The for-profit Prime and nonprofit Garden City Hospital signed a binding asset purchase agreement Thursday. A news release did not disclose a purchase price, but Prime has agreed to invest at least $35 million in capital improvement at Garden City Hospital on top of the acquisition costs. A Detroit News report said the deal is worth around $80 million.
Garden City Hospital, which is licensed for 323 beds, has reportedly been looking for a sale or affiliation for the past few years. Gary Ley, president and CEO of the hospital, said he is "confident this transition will allow GCH to maintain a tradition of great care and honor the pledge of our founders for a long time to come."
In addition to capital investments, Prime agreed to maintain Garden City Hospital as an acute-care provider for an undisclosed period of time. Prime will also hire "substantially all" hospital employees.
The pending sale would give Prime its first hospital in Michigan. Prime operates 25 acute-care hospitals throughout the country, including California, Kansas, Nevada, Pennsylvania, Rhode Island and Texas. Prime is also aggressively pursuing hospitals in the New Jersey market.
The transition now requires regulatory approval from Michigan Attorney General Bill Schuette, which is expected to take several months.
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