Dignity Health in San Francisco has signed an asset purchase agreement with California-based Prime Healthcare Services for the sale of Saint Mary's Regional Medical Center in Reno, Nev.
The Dominican Sisters of San Rafael, the hospital's sponsoring congregation, approved the transaction, which is expected to finalize June 30.
The sale of Saint Mary's will ensure the hospital remains open. It has experienced recent financial challenges and posted a 2011 net loss of $43.5 million. The agreement calls for Prime Healthcare to invest $200 million in capital in Saint Mary's over the next three years.
According to the agreement, Prime Healthcare has committed to the following:
• Maintain current service lines operations, including the emergency department;
• Offer employment to substantially all of the hospital's 1,600 employees;
• Continue the hospital's commitment to the community by maintaining the current charity care policy;
• Assume health plan contracts, including Saint Mary's Health Plans.
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The Dominican Sisters of San Rafael, the hospital's sponsoring congregation, approved the transaction, which is expected to finalize June 30.
The sale of Saint Mary's will ensure the hospital remains open. It has experienced recent financial challenges and posted a 2011 net loss of $43.5 million. The agreement calls for Prime Healthcare to invest $200 million in capital in Saint Mary's over the next three years.
According to the agreement, Prime Healthcare has committed to the following:
• Maintain current service lines operations, including the emergency department;
• Offer employment to substantially all of the hospital's 1,600 employees;
• Continue the hospital's commitment to the community by maintaining the current charity care policy;
• Assume health plan contracts, including Saint Mary's Health Plans.
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