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Prime Healthcare Foundation Enters Into Agreement With Texas-Based Knapp Medical Center

ONTARIO, Calif., Jan. 2, 2013 /PRNewswire/ -- The non-profit Prime Healthcare Foundation announced today that it has obtained a controlling interest in Knapp Medical Center, located in Weslaco, Texas. The Center will continue to operate as a non-profit.

Under the terms of the agreement, Knapp Medical Center will continue to operate as an acute care hospital with the same charity care programs currently in place, and Prime Healthcare will invest at least $10 million in capital improvements.

"The Prime Healthcare Foundation will continue the mission of Knapp Medical Center and help it become one of the best hospitals in the state and nation," said Prem Reddy, MD, FACC, FCCP, Prime Healthcare Foundation's founder and President. "The decision to keep Knapp Medical Center non-profit, and join it with the Foundation's four other non-profit hospitals, was based on our desire to better serve the residents and the surrounding communities that rely on it for quality healthcare."

Prime Healthcare Services and Prime Healthcare Foundation operate 20 acute care hospitals in four different states with more than 3,700 licensed beds, employing more than 15,000 individuals and was recognized as a Top 15 Health System in the Nation in 2012 by Thomson Reuters.

As a result of the inclusion of Knapp into the Prime Healthcare Foundation system, a new not-for-profit community foundation has been formed. Funded with approximately $100 million, the Knapp Community Cares Foundation (KCCF) will seek to expand and improve access to healthcare for medically underserved populations in the area.

"Through this agreement, Knapp will affiliate with a large, financially strong healthcare system and reap the economies of scale necessary to survive in the evolving healthcare environment," said John Lackey, Chairman of the Board for Knapp Medical Center. "Over the last few years, the hospital board has continuously and openly expressed its interest in finding a solution to the financial challenges that have affected standalone hospitals. We are excited about the long-term stability and financial security this transaction brings to Knapp Medical Center."

Knapp Medical Center

Knapp Medical Center is a 226-bed not-for-profit charitable acute care hospital, founded more than 50 years ago.  More than 200 general and specialty physicians serve on the Knapp Medical Staff, and Knapp is one of Hidalgo County's largest private employers with approximately 1,000 employees.

The hospital's primary service area is the Mid-Valley which includes Donna east to La Feria and Monte Alto south to the Rio Grande River.  The hospital has won awards for both information technology and patient quality.

Prime Healthcare Foundation

The Foundation is a non-profit 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 four not-for-profit hospitals – Encino Hospital Medical Center, Huntington Beach Hospital, Montclair Hospital Medical Center and Sherman Oaks Hospital – and is governed by an independent Board of Directors.

Huntington Beach Hospital and Encino Hospital Medical Center have each been recognized as a "Top Performer on Key Quality Measures" by The Joint Commission, the leading accreditor of health care organizations in the nation. Huntington Beach Hospital also received the ACS Midas-Platinum Quality Award in 2007. Montclair Hospital Medical Center was ranked as a Top 100 Hospital in the Nation in 2009, while Sherman Oaks Hospital has received Congressional Recognition for "Outstanding and Invaluable Service" to the community.

Prime Healthcare Services

Ontario, CA-based Prime Healthcare Services (www.primehealthcare.com), with a motto of "Saving Hospitals, Saving Jobs and Saving Lives," is one of the largest hospital companies in the nation.

Prime Healthcare was recognized as one of the "15 Top Health Systems in the Nation" in 2012 by Thomson Reuters, based on quality of healthcare and patient satisfaction. It was also recognized as a top health system in 2009. Five Prime Healthcare hospitals were ranked among the "100 Top Hospitals in the Nation" in 2012 by Thomson Reuters. Eight Prime Healthcare hospitals earned national recognition as "Top Performer on Key Quality Measures," (Top 18 percent), in 2012 from The Joint Commission, the leading Medicare accreditation organization in the country. 

Through their subsidiaries, Prime Healthcare Services and the non-profit Prime Healthcare Foundation have more than 15,000 employees and own and operate 20 acute-care hospitals: Alvarado Hospital Medical Center, Centinela Hospital Medical Center, Chino Valley Medical Center, Desert Valley Hospital, Encino Hospital Medical Center, Garden Grove Hospital Medical Center, Huntington Beach Hospital, La Palma Intercommunity Hospital, Montclair Hospital Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, Sherman Oaks Hospital and West Anaheim Medical Center – in California, Saint Mary's Regional Medical Center – in Nevada, Lower Bucks Hospital and Roxborough Memorial Hospital – in Pennsylvania, Dallas Medical Center, Harlingen Medical Center and Pampa Regional Medical Center – in Texas.

SOURCE Prime Healthcare Services

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