California Attorney General Kamala D. Harris approved the controversial sale of six nonprofit Catholic hospitals to a for-profit company, but with strong conditions.
The highly debated sale was approved Friday by Harris who claims that the ruling was solely centered on protecting access to healthcare services, upholding the continuity of care and protecting employees, according to the Los Angeles Times.
The chain, the Daughters of Charity Health system, were weighted down by a $10 million monthly loss. Among other problems the chain faced were the imminent threat of filing for bankruptcy protection, a reduction of services and potentially closing hospitals if the sale was not approved.
The sale carried heavy opinions on both sides. The chain held a long tradition of treating the sick and poor. Some pushed against Harris saying that Prime Healthcare Services was more concerned with profits and would be a bad fit because it has a history of cutting services to improve profits.
On the other side, it was painfully clear that the sale was the best option to keep the hospitals open and to protect jobs. The California Nurses Association was among those that wanted the sale to go through with the Service Employees International Union-United Healthcare Workers West opposing it.
Prime was given strong conditions with the purchase of the chain, mostly focused on maintaining the same standard of care currently being offered. Specifically, they demanded that Prime continue to participate in Medi-Cal and Medicare programs and to continue to operate four of the hospitals as acute care facilities with emergency services for 10 years.
The six hospitals are O’Connor Hospital in San Jose, Saint Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City, Seton Coastside in Moss Beach, St. Francis Medical Center in Lynwood and St. Vincent’s Medical Center in Los Angeles.
Leave a Reply