Prime Healthcare Services Foundation released the following statement today regarding California Attorney General Kamala Harriss

rejection of its good-faith, qualified bid to buy and operate Victor Valley Community Hospital as a nonprofit community hospital: The Attorney Generals inexplicable and unexpected decision could have an immediate and dire impact on the needs of an already-underserved High Desert community. The Foundations fully qualified and exhaustively vetted offer to purchase and operate Victor Valley Community Hospital as a nonprofit community hospital was accepted by the hospitals board of directors itself, which has a fiduciary responsibility for the facility. In addition, a medical expert hired by the Attorney General herself had recommended approval of the sale with conditions, and Prime Healthcare Services Foundation had agreed to every single condition. Through her decision, the Attorney General has posited that she knows more about what is good for the hospital than those who govern the hospital and are committed to keeping it open, as well as her own medical expert. The Foundation, which is a nonprofit public charity, had contractually agreed to offer employment to nearly all of Victor Valleys existing employees and provide the same (or greater) levels of charity care as it has historically provided. The Foundation also committed to form a local governing board consisting of local physicians and community members with input from the hospitals current board of directors. The Foundation had also pledged to invest no less than $25 million for capital improvements, information technology, infrastructure improvements, and/or working capital and maintain all essential services, including emergency services, medical/surgical services, labor and delivery services and pediatric beds. It is difficult to view this decision by the Attorney General in anything other than a political light. Without giving any specific reasons for the denial, she clearly has chosen to use the legal authority of her office to make league with one particular labor organization that has been running a blatantly false smear campaign of vilification against hospitals operated by Prime Healthcare. 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. Dr. Reddy and his family, residents of the High Desert for the past 30 years, have donated more than $350 million to charity over the years. 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.