Primary Healthcare to acquire Riverview

November 7, 2014 chris
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Riverview Regional Medical Center announced today (Nov. 7)
an agreement for the sale of substantially all of the assets of the 281-bed
hospital and its related outpatient services to a subsidiary of Prime
Healthcare Services, LLC.

The purchase agreement includes a commitment from Prime to
continue the employment of all employees who satisfy Prime’s employment
requirements. There will be no change or modification to the current privileges
for physicians on the medical staff.

During the first three years following the transaction
close, Prime will fund at least $15 million in capital expenditures at the
hospital to fund equipment, development of new services, physician recruitment
and other capital improvements.

“Riverview Regional has a long-standing tradition of serving
our patients and our community with high-quality healthcare services,” said Jim
Edmondson, chief executive officer of Riverview Regional Medical Center. “We
are committed to our community and pleased that Prime Healthcare recognizes our
achievements as well as our opportunities for continued success in the future.”

The agreement includes a commitment to operate as a general
acute care hospital with an open and accessible emergency room for a period of
at least five years following the transaction close.

Riverview will be divested by a subsidiary of Community
Health Systems to fulfill requirements set by the Federal Trade Commission
during the acquisition of Health Management Associates.

The transaction is subject to customary regulatory
approvals, including approval by the Federal Trade Commission. Until the
transaction is complete, current ownership will remain in place. Financial
terms of the transaction have not been disclosed.