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SCL Health System Announces Sustainable Path Forward for Two Kansas Health Facilities

January 29, 2013

Transition to include capital improvements, job security and preservation of charity care

Media Contacts:

SCL Health System
Cheston Turbyfill, Director, Public Affairs
303-813-5091 or 312-952-0837 mobile

Prime Healthcare Services
Edward Barrera, Communications Director
(909) 235-4305

DENVER — (Jan. 29, 2013) – SCL Health System, a faith-based, nonprofit organization, and Prime Healthcare Services, recognized as one of the Top 15 Health Systems in the Nation in 2012, announced today they have reached an agreement for Prime Healthcare Services to purchase both Providence Medical Center in Kansas City, Kan., and Saint John Hospital in Leavenworth, Kan. Download a copy of the release.

Terms were not disclosed.

Prime Healthcare will make significant investments to financially stabilize the facilities and ensure that both hospitals continue to provide compassionate and quality care to Wyandotte and Leavenworth counties and surrounding communities.
Prime Healthcare has committed to the following:

  • Maintain current acute care and emergency department services at both campuses for at least five years.
  • Offer employment to substantially all employees.
  • Continue the hospitals’ commitment to the community by maintaining current levels of charity care.
  • Provide at least $10 million toward capital and other investment projects over the next five years.

“We are confident we have found the best organization to ensure a successful future for both Providence Medical Center and Saint John Hospital,” said Michael Slubowski, FACHE, FACMPE, President and CEO of SCL Health System. “The clinicians and associates at these facilities are dedicated professionals who are committed to providing the highest level of person-centered care. With this transaction, they are best positioned to ensure continuation of that care, including to those who are poor and vulnerable.”

“Prime Healthcare intends to reaffirm these hospitals as top providers of quality health care in the state and country,” said Prem Reddy, MD, FACC, FCCP, Chairman, President and CEO of Prime Healthcare Services. “We understand how important these acute care facilities are to the people in Wyandotte and Leavenworth counties and intend to ensure they remain in vital service to these communities for years to come.”

During the past 10 years, SCL Health System has invested significant resources to sustain the mission of these care sites, including capital investments of more than $96 million. In addition to facility and technology upgrades, SCL Health System has contributed $212 million for charity care and an additional $215 million in bad debt expenses during that same period.

Given the challenging economics of today’s health care environment, the ongoing operating model was deemed unsustainable by both SCL Health System’s Board of Directors and Leaven Ministries, the sponsoring organization of both care sites.

“We are appreciative of the wonderful legacy the Sisters of Charity of Leavenworth leave these hospitals and our communities,” said Michael Parra, M.D, board member for Providence Medical Center and Saint John Hospital. “Yet, now is the time to embrace a new direction and Prime Healthcare Services has a strong reputation for quality, excellence and growth.”

Saint John Hospital and Providence Medical Center, as well as medical office buildings and certain joint ventures, will transition to Prime Healthcare Services. The Duchesne Clinic and Saint Vincent Clinic as well as the Providence Saint John Foundation, will remain with SCL Health System and continue to serve the community. SCL Health System and Prime Healthcare are negotiating a contract for the continuation of certain services such as information systems. Both Providence Medical Center and Saint John Hospital will continue to provide comprehensive medical care during the transition. There will be no impact on patient care.

About SCL Health System
SCL Health System (SCLHS), based in Denver, is a faith-based, nonprofit health care organization operating 11 hospitals, four safety net clinics, one children’s mental health treatment center and more than 100 ambulatory service centers in four states – California, Colorado, Kansas and Montana. Our $2.7 billion health network is dedicated to improving the health of the communities and individuals we serve, especially those who are poor and vulnerable. On an annual basis, SCLHS provides more than $220 million in community benefit, including services for the poor, health screenings, educational programs, community donations and research. SCLHS was founded by the Sisters of Charity of Leavenworth, who opened their first hospital in 1864. To learn more, visit www.sclhealthsystem.org.

About Prime Healthcare Services
Ontario, CA-based Prime Healthcare Services (www.primehealthcare.com), with a motto of “Saving Hospitals, Saving Jobs and Saving Lives,” is one of the largest hospital companies in the nation.

Prime Healthcare was recognized as one of the “15 Top Health Systems in the Nation” in 2012 by Thomson Reuters, based on quality of healthcare and patient satisfaction. It was also recognized as a top health system in 2009. Five Prime Healthcare hospitals were ranked among the “100 Top Hospitals in the Nation” in 2012 by Thomson Reuters. Eight Prime Healthcare hospitals earned national recognition as “Top Performer on Key Quality Measures,” (Top 18 percent), in 2012 from The Joint Commission, the leading Medicare accreditation organization in the country.

Through their subsidiaries, Prime Healthcare Services and the non-profit Prime Healthcare Foundation have more than 16,000 employees and own and operate 21 acute-care hospitals: Alvarado Hospital Medical Center, Centinela Hospital Medical Center, Chino Valley Medical Center, Desert Valley Hospital, Encino Hospital Medical Center, Garden Grove Hospital Medical Center, Huntington Beach Hospital, La Palma Intercommunity Hospital, Montclair Hospital Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, Sherman Oaks Hospital and West Anaheim Medical Center – in California, Saint Mary’s Regional Medical Center – in Nevada, Lower Bucks Hospital and Roxborough Memorial Hospital – in Pennsylvania, Dallas Medical Center, Harlingen Medical Center, Knapp Medical Center and Pampa Regional Medical Center – in Texas.