Sunday, October 12, 2014

Seton Medical Center sold, but needs further approvals

The Daily Journal (San Mateo), Michelle Durand, 10/11/14.  "Mixed reviews for Seton sale:  one union vows to fight sale to controversial hospital chain, other strikes deal for nurses."

On Medi-Cal?  We could try a fan
Seton Medical Center is up for sale and some are worried key departments could be shut down by a new owner. - BRENDAN P. BARTHOLOMEW/SPECIAL TO THE S.F. EXAMINER
Seton changes ownership
from Daughters of Charity to Prime
"Seton Medical Center in Daly City and its sister facility in Moss Beach will be sold to Prime Healthcare, a controversial Southern California hospital chain that some unions decry as prioritizing profits over patient care.

The Daughters of Charity Health System announced Friday morning that it will sell its six-hospital chain which includes Seton and Seton Coastside in San Mateo County along with O’Connor Hospital in San Jose, St. Francis Medical Center in Lynwood, Saint Louise Regional Hospital in Gilroy and the statewide DCHS Medical Foundation.

....  The agreement with Seton applies to Seton and Seton only. It does not pass to the successor entity. It’s impossible to say where the county will go at this point. We’ll have to see what the final agreement looks like,” Pine said.  The sale must still be approved by the Vatican and California Attorney General Kamala Harris."  Read article.

Reference -  Prime Healthcare Services.  "Our Mission:  its to provide comprehensive quality healthcare in a compassionate, convenient and cost-effective manner."  Wikipedia/Prime Healthcare Services.   

Related industry article - Modern Health/Healthcare Business News/Beth Kutscher, 10/10/14. "Prime Healthcare wins bid for struggling Catholic system." "Prime's not-for-profit charitable arm, the Prime Healthcare Foundation, will be an owner in the hospital group. ... Prime more than any other chain has made a business model out of turning around failing hospitals. But it has come under scrutiny for its tactics.  Daughters of Charity earlier this year saw its credit rating from Standard & Poor's downgraded six notches to B-.  Its 2013 annual report books a net loss of $74.5 million on more than $1.3 billion in revenue. The loss follows a $59.5 million loss on revenue on nearly $1.3 billion in revenue in fiscal 2012.

Related newpaper articles San Jose Mercury News/Tracy Seipel, 10/10/14, "Daughers of Charity announces sale of O'Connor, other hospitals to controversial company.".  .... "But Robert Issai, president and CEO of Daughters of Charity, remains confident that the deal -- which must still be approved by state and federal agencies, as well as the Vatican -- is the best one all around."  ... "These nonprofit, religious hospitals have been dedicated to the provision of care to underserved residents in the community for 150-plus years,'' Jeff Smith (county executive for Santa Clara County) said. "A sale to an aggressive, profit-driven health system signals the abandonment of that mission. Historically, Prime has overcharged for health care services and has minimized its care to Medi-Cal and uninsured patients. If they take this approach in Santa Clara County, the health of the community will be put at risk." Prime's bid, he said, "was superior to all others."  

Los Angeles Times/Chad Terhue/10/10/14. "Prime Healthcare to acquire St. Vincent, St. Francis medical centers." .... "Under the deal announced Friday with the Daughters of Charity Health System, Prime said it will keep all six hospitals open and maintain their existing services, including emergency rooms and trauma centers, for at least five years. ... Prime said it will spend $150 million on capital improvements over a three-year period and "work to substantially protect 7,600 jobs" at the hospitals. ... Daughters of Charity, a nonprofit Catholic chain, is also selling four facilities in the Bay Area: O'Connor Hospital in San Jose, Saint Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City and Seton Coastside in Moss Beach."

Note photographs:  Seton Medical Center, Daly City by Brendan P. Bartholomew from a special article to San Francisco Examiner, 7/16/14.  Nice photograph and article Brendan!  Man hooked up to a critical care ventilator from CareFusion/VELA Ventilator.

Posted by Kathy Meeh


todd bray said...

UGH, an LA profiteer controlling Seton north and on the coast? This wont end well for anyone not a share holder or Prime if the sale goes through

Anonymous said...

Shareholders and corporations can look out for themselves. What about the patients and employees?