July 14, 2011 4:44 PM
Tomoya Shimura
Staff Writer

RIVERSIDE • A federal bankruptcy court judge approved an agreement allowing Dr. Prem Reddy’s nonprofit Prime Healthcare Services Foundation to purchase Victor Valley Community Hospital for $35 million.

The deal is still pending approval by the California Attorney General.

“Now it’s up to (the Attorney General) to work on the time frame,” said Prime’s CEO, Lex Reddy.

The Victorville hospital accepted the offer from Prime earlier this month, after a deal fell through with KPC Global. That company had made a $37 million offer during a November auction, with Prime the next-highest bidder.

Judge Catherine Bauer approved Prime’s purchase of the hospital Tuesday.

Prime Healthcare Services Foundation is the nonprofit arm of Prem Reddy’s hospital management company Prime Healthcare Services, which owns Desert Valley Hospital. The Ontario-based foundation runs Encino and Montclair hospital medical centers as nonprofits.

Lex Reddy said that his company will keep VVCH as a nonprofit. Prime also plans to upgrade the 43-year-old hospital, which has $20 million in outstanding debt.

Tomoya Shimura may be reached at (760) 955-5368 or TShimura@VVDailyPress.com. Follow Tomoya on Facebook at facebook.com/ShimuraTomoya.

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