Prime Healthcare has acquired Verity Health’s St. Francis Medical Center for a net consideration of over $350m.

Located in Lynwood, Los Angeles (LA) county, California, US, the hospital has 384 beds.

The acquisition follows after the California Attorney General conditionally approved the ownership transfer in July this year.

The US Bankruptcy Court for the Central District of California gave its approval for the Asset Purchase Agreement (APA) in early April.

Under the transaction, Prime pledged to invest $47m in capital improvements and will let Verity keep more than $100m in estimated Medicaid Quality Assurance Fee payments.

Prime Healthcare has already started executing on its commitment to modernise patient-centred care by installing Epic integrated electronic medical record, Omnicell systems for automated medication dispensing and new interventional radiology and cardiology capability and more.

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St. Francis Medical Center is an historic acute care hospital. It treats nearly 64,000 emergency patients and around 2,000 trauma patients annually.

Verity Health CEO Rich Adcock said: “Prime has remained deeply committed to St. Francis and was chosen as the most capable and only bidder with the fortitude to support the hospital in its time of greatest need, despite the burden of the pandemic, the uncertain future and economic impact on hospitals.

“We have been impressed by the unwavering dedication and talent of the Prime team and we are confident that Prime will preserve and improve upon the St. Francis legacy for future generations of the South LA community, as it has done for hospitals and communities time and time again across this nation.”

In addition, all of St. Francis’s employees have been retained as agreed.

Prime Healthcare operates 46 hospitals across 14 US states with nearly 40,000 staff.