Prime is far and away best candidate to buy Daughters of Charity hospitals
"It's beyond comprehension how the Mercury News could advocate
for the potential closure of six vital community hospitals in California
and the loss of pension and health benefits of 16,000 union and non-union
workers. But that is essentially what it called for in its ill-considered
editorial urging the state Attorney General to reject the sale of Daughters
of Charity Health System (DCHS) to Prime Healthcare.
The Daughters of Charity hospitals -- including O'Connor Hospital in
San Jose and Saint Louise Regional Hospital in Gilroy -- are losing $10
million a month and are in very real danger of shutting down or filing
for bankruptcy. With cash reserves running low, time is of the essence.
Rejection of the sale by Attorney General Kamala Harris would accelerate
the financial crisis and eventual demise of these facilities.
This is not an empty threat. In January 2014, the DCHS board of directors
responded to this severe financial distress and launched an exhaustive
search for a buyer with the experience and financial wherewithal to nurse
the hospitals back to health.
More than 130 health systems expressed initial interest, and from there
the choices were whittled to four finalists. In the end, Prime Healthcare
was far and away the best candidate, meeting or exceeding all the criteria
established by the board. Prime Healthcare will keep the hospitals open,
continue the charity care mission, honor all union contracts and invest
$150 million in capital improvements over the next three years."
To go to the entire San Jose Mercury News article,
click this link