The parent company of Alvarado Hospital in San Diego was sold Wednesday to Prime Healthcare Services, an Ontario-based company known for buying up financially distressed hospitals and using aggressive cost-cutting and billing practices to try to turn them around.
The private company, established in 2001, owns 13 other hospitals in California, including Paradise Valley Hospital in National City. It bought Paradise Valley for $30 million in 2007 from Advent Health as the hospital faced imminent bankruptcy.
The Alvarado sale came as a surprise to the hospital staff, although the deal had been in discussions for about a year, Prime Chairman Dr. Prem Reddy said.
No purchase price was disclosed.
What do you think, will the new owner be able to save this sinking ship?
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