Dr Prem Reddy adds one more hospital to his network...purchase of hospital in Anaheim still pending...BD
A growing hospital chain that has taken heat for its business practices will assume ownership of the financially strapped Centinela Hospital Medical Center in Inglewood today - a deal that surprised everyone from union leaders to county officials to patients. The 369-bed hospital was sold to Victorville-based Prime Healthcare Services Inc. for an undisclosed amount. Two other facilities run by Centinela Freeman Health System - a hospital in Marina del Rey and the Daniel Freeman Memorial Hospital in Inglewood - won't be affected, officials said.
Prime Healthcare executives, however, say they will scrutinize contracts with five major HMO insurance providers to see whether the reimbursement rate they pay for services can be renegotiated. If not, the contracts may be cut, which means patients with Blue Cross, Blue Shield or other HMO insurance may not be able to use Centinela for non-emergency care in the future.
Centinela also closed its emergency room at Daniel Freeman Memorial Center in December. Without contracts dictating reimbursement rates, the hospital can charge insurance companies full price for services until the patient is transferred or released.