ONTARIO, Calif.--(BUSINESS WIRE)--On September 1, 2022, Prime Healthcare Services, Inc. completed the repurchase of nine general acute care hospitals and two related medical office buildings from Medical Properties Trust, Inc. for approximately $360 million. Prime Healthcare is the largest physician-founded and led health system in the nation, recognized for award-winning care and forwarding health equity by transforming hospitals into valued community assets.
The hospitals and medical office buildings purchased, part of Prime Healthcare’s portfolio of 45 hospitals and more than 300 outpatient locations in 14 states, were spread throughout four states and originated from sale leaseback transactions originally entered in 2012.
“Over the last ten years, Prime has invested physical and human capital into these facilities, resulting in significant improvements in their financial performance, operations and sustainability as community assets,” said Prime’s Chief Financial Officer Steve Aleman. “The value created from these assets and those across the system, by the Prime model, has led to the ability to prudently repurchase the assets and further expand the portfolio of our hospitals. With the purchase, Prime now owns the operations and the underlying real estate of the majority of our hospitals.”
Prime funded the transaction from a combination of cash on hand, ABL credit draw and various related entity financings. The transaction materially reduces the company’s overall effective interest rate and annual debt service with net neutral leverage.
Prime Healthcare stands apart from other health systems by its unique ability to transform financially struggling hospitals while delivering award winning, value-based care for hundreds of communities across the nation.
About Prime Healthcare
As an award-winning health system headquartered in Ontario, California, operating 45 hospitals and more than 300 outpatient locations in 14 states, Prime Healthcare provides more than 2.6 million patient visits annually. It is one of the nation’s leading health systems with nearly 50,000 employees and physicians. Fourteen of the Prime Healthcare hospitals are members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit public charity. Please visit www.primehealthcare.com.
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