Key Highlights
- Prime Healthcare has acquired the real estate for four facilities from Medical Properties Trust (MPT) for $350 million.
- The deal includes Saint Clare’s Health and St. Francis Medical Center, enhancing Prime’s asset control and reducing debt by $215 million.
- Funded by $250 million cash and a $100 million promissory note, this strategic move aims to unencumber facilities from significant debt.
Source: Business Wire
Notable Quote
- “Prime’s continued acquisition of the hospital real estate assets is a testament to the significant value that Prime’s unique operating model has generated,” – Steve Aleman, CFO at Prime Healthcare
SoHC's Take
This transaction is a strategic leap for Prime Healthcare, showcasing a savvy approach to financial management and asset control. By acquiring these properties, Prime not only reduces its debt load but also secures more autonomy over its facilities. This move is aligned with Prime’s long-term strategy of investing in healthcare excellence and community service, highlighting its role as a leader in transforming healthcare through innovative ownership structures. The acquisition reflects a well-timed financial decision, leveraging current market conditions to optimize future cash flows and continue their mission of delivering high-quality care across their national network.
