Saint Joseph Mercy Health System and Prime Healthcare Services announce purchase of St. Joseph Mercy Port Huron
Saint Joseph Mercy Health System (SJMHS) and Trinity Health announced today
that they have entered into a definitive agreement under which Prime Healthcare
Services, a hospital system based in Ontario, Calif., would acquire St.
Joseph Mercy Port Huron, located in Port Huron, Mich. The decision of
the SJMHS board of directors was supported by the hospital's local board.
"We are excited to acquire St. Joseph Mercy Port Huron and look forward
to enhancing its services to the Port Huron community," said Prem
Reddy, M.D., FACC, FCCP, chairman, president and CEO of the for-profit
Prime Healthcare Services. "We are committed to making hospitals
successful by strengthening, building, investing and improving their programs
SJMHS and Trinity Health, following an extensive due diligence process
which included a thorough assessment of strategic, financial and regulatory
issues as well as a mission discernment, concluded that the sale of the
hospital and its assets to Prime Healthcare Services was in the best interest
of the colleagues, patients and communities being served.
Under the conditions of the agreement, Prime Healthcare has agreed to
invest $20 million in capital improvements to the hospital and its operations
over a three-year period. Dr. Reddy confirmed that the capital investments
will include a Tru Beam Linear Accelerator, subject to Certificate of
Need (CON) approval.
Prime Healthcare has committed to adopting a charity care policy that
is just as favorable as the current charity policy in effect and will
continue to provide treatment for indigent patients and programs that
support the community, specifically including The Peoples' Clinic
for Better Health, an indigent care clinic operated by the hospital in
conjunction with the St. Clair County Medical Society.
Over the past several years SJMHS and Trinity Health have been developing
a highly integrated care delivery system in southeast Michigan. However,
St. Joseph Mercy Port Huron's distance from other SJMHS hospitals
and outpatient centers have challenged the ability of SJMHS to integrate
operations and prepare for population health management in the best interest
of the community.
"When Prime Healthcare expressed an interest in the hospital earlier
this year, we determined that both parties shared a common vision for
the future of the hospital's healing mission that is in the best interest
of its patients and employees," said Garry C. Faja, regional president
and CEO, SJMHS. "We received the assurances we needed to feel confident
that Prime Healthcare could and would continue serving the health care
needs of the community. Prime Healthcare has a successful track record
of sustaining and advancing access to quality health care services among
its acquired hospitals."
Prime Healthcare fully recognizes the importance of preserving the hospital
as an acute care hospital with an open and accessible emergency department.
Prime Healthcare also will maintain an independent medical staff and local
"Prime Healthcare's investment in our community will serve to
open a new and exciting chapter in our hospital's history," said
Rebekah Smith, president and CEO, St. Joseph Mercy Port Huron. "Our
affiliation will enable our hospital and staff to continue to provide
state-of-the-art health care to our patients and community for the future.
We are confident the hospital will be well positioned for decades to come
as a result of this transaction."
The transaction is expected to close upon completion of all due diligence
and receipt of necessary regulatory and legal approvals.