Officials with Prime Healthcare Services announced last week that Glendora Community Hospital will be transformed into a non-profit facility.
Prime Healthcare Services, which operates nearly 30 hospitals in multiple states announced in a written statement January 4 that the 128-bed facility was donated to the non-profit Prime Healthcare Foundation, to reportedly broaden the hospital’s reach in the community.
The move also reportedly frees the hospital of existing debt, according to the statement published on PRnewswire.com.
“Prime Healthcare believes that exceptional healthcare should be part of every community,” said Prem Reddy, chairman, president and CEO of Prime Healthcare Services and Prime Healthcare Foundation founder. “The decision to convert Glendora Community Hospital to a not-for-profit hospital was based on our desire to better serve the residents who rely on the hospital for quality health care.”
Now that it as acquired Glendora Community Hospital, Prime Healthcare Foundation owns and operates eight hospitals in California and Texas and maintains $700 million in assets, all reportedly donated by Reddy.
Glendora Community Hospital provides acute care to its patients, including surgical, intensive care, diagnostic imaging, women’s health services and 24-hour basic emergency services.
A study publicized in August of 2015 concluded that for-profit and non-profit hospitals differed very little in how much of their operating costs were devoted to charity.
The study published in Health Affairs examined data collected from 264 hospitals between 2011 and 2013 showed that for-profits dedicated an average of 1.4 percent of operational expenses to charity care, under hospital policies that allow patients to pay nothing. Non-profits dedicated about 1.9 percent of their operational expenses.
Regarding uncompensated care, both non-profit and for-profit hospitals averaged about 4.4 percent of their operating expenses, the study found.
The facility was formerly known as Glendora Community Hospital before acquiring the moniker of East Valley Hospital Medical Center.
Prime Healthcare Services acquired the hospital in May of 2014, converting it back to its original name.