Prime Healthcare Services Applauds Gov. Brown's Veto of SB 408

Oct 12, 2011, 19:32 ET from Prime Healthcare Services

ONTARIO, Calif., Oct. 12, 2011 /PRNewswire/ -- In a statement today, Prime Healthcare Services applauded Gov. Jerry Brown for his veto on Sunday of Senate Bill 408, which was sponsored by state Sen. Ed Hernandez (D-West Covina):  

Gov. Brown recognizes that it's better to promote business in California rather than overregulate it.  As the governor stated in his veto message, this unnecessary bill would have required hospitals and other health facilities "to file a new license application with the state not only when there is a bona fide change of ownership, but when far less important changes occur."

Sen. Hernandez pushed this bill despite growing criticism that it was unnecessary and overly burdensome and would only increase costs for healthcare providers.  But the senator dismissed the opposition, which included the California Hospital Association and Catholic Healthcare West, saying openly that his purpose was to "restrict Prime's growth" and stop it from buying and saving financially distressed hospitals.  The senator's curious obsession with this objective can only be viewed as an attempt to do the bidding of Kaiser Permanente and the Service Employees International Union.  

Prime Healthcare is battling Kaiser Permanente in court, seeking more than $100 million in past due bills, while the Los Angeles Times reported that Kaiser has funneled nearly $400,000 since 2006 to a corporation owned by Sen. Hernandez.

Prime Healthcare also has fought SEIU's aggressive attempts to unionize its hospitals and drive up labor costs, and SEIU – which is a key political supporter of Sen. Hernandez – has been running a campaign of vilification and defamation against Prime.  

Prime Healthcare appreciates the governor's careful review of this badly written bill and would gladly meet with him and Sen. Hernandez to discuss measures that would allay the senator's concerns while not restricting Prime Healthcare's ability to turn around failing hospitals.

Prime Healthcare Services

Ontario, CA-based Prime Healthcare Services, recognized as one of the top 10 health systems in the country, is a progressive, innovative and rapidly expanding hospital management company with a mission to provide comprehensive quality healthcare in a compassionate, convenient and cost-effective manner.

With over 10,000 employees, Prime Healthcare Services currently owns and/or operates 12 acute care facilities: Alvarado Hospital Medical Center, Centinela Hospital Medical Center, Chino Valley Medical Center, Desert Valley Hospital, Garden Grove Hospital Medical Center, Huntington Beach Hospital, La Palma Intercommunity Hospital, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, Sherman Oaks Hospital, and West Anaheim Medical Center.  

Nine of these hospitals are accredited by Joint Commission and seven of the nine hospitals were recently recognized as Top Performers in the Nation (Top 14%) on Key Quality Measures by Joint Commission, a Medicare accreditation agency.

Prime Healthcare Services Foundation

The Foundation is a nonprofit public charity that was founded by Dr. Prem Reddy and his family reflecting their commitment to give back to the communities that they serve.

The Foundation owns and operates two nonprofit hospitals, Encino Hospital Medical Center and Montclair Hospital Medical Center (a Top 100 Hospital in the Nation in 2009), and is governed by an independent Board of Directors.  Both hospitals were recently recognized as Top Performers in the Nation (Top 14%) on Key Quality Measures by Joint Commission, a Medicare accreditation agency.

SOURCE Prime Healthcare Services