Prime Healthcare Foundation, the nonprofit affiliate of Ontario, Calif.-based Prime Healthcare Services, has signed a definitive agreement to acquire East Liverpool, Ohio-based River Valley Health Partners, which includes 152-bed East Liverpool City Hospital.
East Liverpool City Hospital is facing financial challenges, which led to a multi-notch downgrade from Moody's Investors Service in June. The downgrade was based on a number of factors, including the hospital's "very high" operating cash flow losses, according to Moody's.
Prime Healthcare Chairman, President and CEO Prem Reddy, MD, showed excitement about acquiring the distressed hospital.
"Through our acquisition of RVHP, we look forward to partnering with physicians, nurses, employees and the community to preserve this invaluable healthcare institution for generations to come," he said.
Under the agreement, Prime will also acquire River Valley Physicians, comprised of eight primary care and specialty offices, and Ohio Valley Home Health Services.
The acquisition, which is subject to regulatory approval, is expected to close in the first quarter of 2016.
Prime Healthcare Services currently operates 38 acute care hospitals, and seven of the hospitals are members of the Prime Healthcare Foundation.
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