The Daughters of Charity Health System (DCHS) may sell six failing Catholic hospitals to Prime Healthcare Services Inc. after California Attorney General Kamala D. Harris approved the controversial decision, contingent on detailed conditions. Harris made the decision on Feb. 20, the L.A. Times reports.
The Catholic organization is losing $100 million per month. They claim that without a sale, the California hospitals would have to file for bankruptcy protection and cut services. The 7,600-plus employees are also fearful of losing their pensions.
In order for the sale to go through, Prime must keep open all six hospitals for 10 years and maintain four acute-care hospitals. Impoverished patients must also receive the same level of charity care under the new administration as they received from DCHS.
In response to the decision, Prime Healthcare’s vice president of clinical transformation, Dr. Kavitha Reddy Bhatia said the company plans to make their own decision in a week. She added that Harris’ requirement that all six hospitals remain open for a decade is unprecedented in California’s acquisition history.
Many are concerned that Prime Healthcare is more focused on profits than on helping the poor. Don Baisa, a shuttle driver at St. Vincent, one of the two L.A. hospitals included in the deal, told the L.A. Times that he hopes Prime will continue in the tradition of helping the poor. He added, “Lots of people need this place. It is in the heart of L.A.”
