Prime Healthcare Services, a for-profit hospital chain based in Ontario, Calif., has completed its acquisition of nonprofit Garden City Hospital.
The deal was valued at $76 million, according to a May certificate of need report from the Michigan Department of Community Health.
Under terms of the agreement, Garden City will remain an acute-care hospital, continue to provide the same or an increased level of charity care to the community and maintain a local governing board. The agreement also calls for Prime to hire most of Garden City’s approximately 1,000 employees.
Prime Healthcare, which owns and operates 27 hospitals employing more than 30,000, said in a news release that it plans to invest at least $35 million in infrastructure and capital improvements at Garden City Hospital.
The 323-bed osteopathic hospital was the area’s third-largest independent hospital prior to the acquisition.
In 2012, the year of its latest Form 990 tax filing, Garden City Hospital reported $147.8 million in total revenue, $2 million in operating overages after expenses and $179,000 in net assets or fund balances at year’s end.
The hospital had been seeking a buyer for the past three years, according to Crain’s reports.
