Prime Healthcare

By Stuart Pfeifer
September 20, 2015

Hospital operator Prime Healthcare Services Inc. is suing California Atty. Gen. Kamala Harris for imposing strict restrictions that caused the Ontario company to back out of its attempted purchase of six Roman Catholic hospitals earlier this year.

Prime Healthcare agreed to buy the Daughters of Charity Health System last year for $843 million, but backed out of the deal in March after Harris placed several conditions on the sale.

Harris said she would approve the sale only if Prime Healthcare would keep all of the hospitals open for 10 years and provide the same level of charity care to poor patients as Daughters of Charity had. The six hospitals include St. Vincent and St. Francis medical centers in Los Angeles County.

Prime Healthcare said in the lawsuit that Harris was not impartial in her review of the sale. The company accused her of siding with a politically influential labor union, the SEIU-United Healthcare Workers West, which opposed the sale.

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