Mercy and Prime Announce Purchase of Mercy Suburban Hospital
Conshohocken, PA - (March 2, 2015) – Mercy Health System (MHS) announced today that it entered into an agreement, under which Prime Healthcare Services, a health system based in Ontario, California, would acquire Mercy Suburban Hospital, located in East Norriton, PA.
“We are excited for the opportunity to acquire Mercy Suburban Hospital and look forward to enhancing its services to the Montgomery County community,” says Prem Reddy, MD, FACC, FCCP, Chairman, President and CEO of Prime Healthcare. “We are committed to making hospitals successful by strengthening, building, investing and improving their programs and facilities. Prime Healthcare’s mission is to turn hospitals into thriving community assets which provide access to quality healthcare for the benefit of the community they serve.”
MHS conducted mission discernment, strategic, financial and risk assessments, and concluded that the sale of the hospital and its assets to Prime Healthcare was in the best interest of Mercy’s non-profit mission, its patients, its colleagues and the community that Mercy Suburban Hospital has served over the years.
Under the agreement, Prime Healthcare has agreed to acquire Mercy Suburban Hospital as well as the related physician practices and ambulatory sites including Mercy Health Center at Plymouth Meeting Mall. At the completion of the sale, Mercy Suburban will no longer be a Catholic hospital, have a Catholic affiliation and will not use the Mercy name.
Prime Healthcare has committed to invest at least $30 million in capital improvements in the hospital over a 5-year period following the close of the sale. Prime Healthcare has also agreed to adopt a charity care policy that is no less favorable than the current charity care policy in effect.
“We engaged in a process to thoroughly evaluate possible options for Mercy Suburban Hospital and ultimately determined that both Mercy and Prime Healthcare shared a common vision for the future of the hospital that was in the best interest of its patients, colleagues and community,” says Susan Croushore, Interim President and CEO, MHS. “Prime Healthcare has a successful track record of sustaining and advancing access to quality health care services through its acquired hospitals, which importantly includes the provision of charity care and other community benefits.”
“Prime Healthcare’s investment in our community will serve to open a new chapter in Mercy Suburban Hospital’s history,” says Susan Croushore. “This transaction will enhance the hospital’s ability to provide high quality health care to its patients. We are confident that the hospital will be well positioned to serve the community into the future.”
The transaction is expected take approximately 4-6 months to close upon receipt of necessary regulatory approvals.