Memorial Health Services Announces Sale of Anaheim Memorial Medical Center
Press Release; February 28, 2007.ANAHEIM, Calif., Feb. 28, 2007-Memorial Health Services (MHS), a not-for-profit health care system with hospitals in Los Angeles and Orange Counties, announced today that it has entered into a definitive agreement to sell its 224-bed facility in Anaheim to Prime Healthcare Services, Inc. (PHS), a highly respected, rapidly expanding hospital management company. PHS, which owns and operates eight hospitals in Southern California, has pledged to maintain all current levels of hospital services, including the emergency department, while continuing to invest additional capital to improve the infrastructure and technology and creating a center of excellence in cardiac care.
MHS announced last July that it would be exploring options of a partnership or sale of Anaheim Memorial Medical Center as part of its strategy to meet demands for future growth, new technology and required seismic retrofitting at its other hospitals in Los Angeles and Orange Counties, as well as to pursue other strategic opportunities. These hospitals-Long Beach Memorial Medical Center, Miller Children's Hospital in Long Beach, Orange Coast Memorial Medical Center in Fountain Valley and Saddleback Memorial Medical Centers in Laguna Hills and in San Clemente-are experiencing sizable increases in the numbers of patients served, physician referrals, new programs and services, market share and community growth. Additionally, these medical centers-serving more than 3 million people-are filling critical community needs as either the area's major tertiary provider; the region's only designated children's hospital; the sole community hospital; or by being located in communities experiencing significant growth.
Since the announcement in July of 2006, MHS and its representatives have engaged in a comprehensive and deliberate process, meeting with a number of health care organizations interested in the Anaheim Memorial transaction and then identifying those that would best meet the needs of the surrounding communities.
"Critical to our decisions was that the buyer agreed to a number of issues," explains Barry Arbuckle, PhD, President and Chief Executive Officer of Memorial Health Services. "These included a long-term commitment to partner with our physicians and staff in providing quality, acute care services to Anaheim and the surrounding communities; offering round-the-clock emergency services; continuing to serve Medicare, MediCal and charity care patients; and that the purchaser would have the ability to provide sufficient capital resources to continue the hospital's provisions of high quality care."
"I'm proud that Prime Healthcare Services has been chosen to lead such a highly regarded institution like Anaheim Memorial Medical Center," says Prem Reddy, M.D., PHS' Chairman of the Board. "We are committed to make the hospital a Regional Medical Center of excellence, especially in cardiovascular services." In addition, PHS will maintain current levels of charity care.
PHS has experienced tremendous growth with a number of recent acquisitions in the Southland. "We will continue to offer the highest quality of health care for patients in Anaheim and the surrounding communities through our physician-driven, patient-focused medical management protocols that offer quality care in a cost effective manner," says Dr. Reddy.