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Two Pennsylvania hospitals moving to nonprofit status


Prime Healthcare says two facilities in the Philadelphia area are making the transition.

Prime Healthcare says it is moving two of its hospitals in the Philadelphia region to nonprofit status.

Image credit: ©Michael Bogner - stock.adobe.com

Prime Healthcare says two of its hospitals in the Philadelphia region are moving to nonprofit status.

The company said Monday that Roxborough Memorial Hospital in Philadelphia and Lower Bucks Hospital in nearby Bristol are both making the transition. Prime says the transition is expected to be completed in the summer of 2024.

Going forward, Prime Healthcare Foundation, a nonprofit organization, will take ownership of the two hospitals. When the conversion is finished, Prime says all three of the organization’s hospitals in Pennsylvania will have nonprofit status. Suburban Community Hospital in East Norriton, Pa., a Philadelphia suburb, has also moved to nonprofit status.

“This will improve care coordination between the three facilities and aligns with statewide policy initiatives regarding not-for-profit ownership,” Prime said in a news release.

Based in Ontario, California, Prime Healthcare operates 44 hospitals and more than 300 outpatient facilities in 14 states. The Prime Healthcare Foundation, which was established in 2006, includes 14 hospitals in California, Texas, Ohio, Georgia, Pennsylvania, and Rhode Island.

Prime bought the Roxborough and Lower Bucks hospitals in 2012. Roxborough is a 131-bed community hospital, while Lower Bucks has about 150 beds.

“We look forward to engaging the community to develop community health needs assessments that will further improve the health and well-being of all those we serve,” Sonia Mehta, MD, CEO and chief medical officer of Prime Healthcare Region II, said in a statement. “Prime’s hospitals are valued community assets, and we are focused on ensuring that much needed care is provided in the way the community needs and deserves, with high quality and affordable healthcare.”

Prime has also revamped the operations of Suburban Community hospital. The company said the hospital is now focusing on emergency care, will a full-service emergency department and 10 inpatient beds.

Suburban will continue offering imaging, laboratory and diagnostic capabilities. But Suburban is closing down its behavioral health services. Prime cited “low demand” for mental health services and difficulties in retaining behavioral health providers. Suburban is expected to wind down behavioral health services in the middle of July.

In April, Fitch Ratings raised its rating for Prime Healthcare Foundation to BBB+, pointing to a “strong financial profile.”

Prime has pursued weaker performing hospitals in the past, but the system is focused on improving operating results, according to Fitch.

“The current strategy is now less focused on acquiring distressed hospitals, but rather directed at strengthening the system fundamentals through vertical integration of existing assets, supported by investment directed at ambulatory presence,” Fitch said.

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