Parkview Hospital in Riverside California Working on Federal Loan to Improve Hospital’s Financials
Posted Jul 06 2010 9:07am
In short, the hospital needed money to pay off the lender, Prime Healthcare to stop the foreclosure proceedings and a week prior to the hospital being sold at auction and luckily found an unnamed group to pay up. If accepted by HUD, they will be the new owner.
Prime Healthcare is pretty much in the business of buying “stressed” hospitals and in the last couple of years has purchased several in southern California. They do not sign contracts with insurance companies and charge their “customary” fees. When purchased, the hospitals seem to go under major re-organization efforts with everything not profitable either discontinued or scaled down. There are a couple of their facilities in Orange County and they used to be busy bustling hospitals and now pretty much operate first class ER rooms, again where the money can be made and billed. Prime just recently settled with the State of California over the balance due billing situation that was a mess with carriers not paying the charges and patients were getting balance due bills.
Hospitals were even battling amongst themselves for the amounts to be paid.
Parkview is a nonprofit facility and hopefully the loan will work to keep the facility open and running. In southern California with buying distressed hospitals can mean the elimination of many services and patient care programs. BD
Parkview Community Hospital Medical Center's immediate future no longer is in doubt. And hospital officials are now focused on securing a federal loan that would give them the money to better improve the hospital's financial situation.
Since March 9, officials of the Riverside hospital had been pressured to secure an estimated $27.5 million loan to pay off the hospital's lender, which had started foreclosure proceedings.
On Tuesday, a group of unidentified lenders from private institutional lenders, national health plans and local doctors loaned the hospital the money and paid off Victorville-based Prime Healthcare Services Inc. a week before Parkview was to be sold at public auction.
Tuesday's last-minute loan marks the second time in eight years that Parkview has found its way out of a difficult financial situation. In 2002, the hospital sought bankruptcy protection as a result of six years of losses from poor business decisions and mistakes, plus trouble with federal regulators. The hospital emerged from bankruptcy the following year.
Prime Healthcare bought the hospital's debt in December from the hospital's former lender, Providence, R.I.-based Textron Inc. Prime Healthcare has 13 hospitals, 12 of which are in Southern California. It specializes in buying troubled hospitals and making them profitable.