June 20, 2008
Kaiser Permanente Purchases Moreno Valley Community Hospital
Kaiser Permanente has purchased Moreno Valley Community Hospital for $53 million. The transaction was completed at 12:01 a.m. on June 20, 2008.
"The sale of Moreno Valley Community Hospital begins a new chapter in our efforts to lead Valley Health System back to financial health," said Fred Harder, Chief Executive Officer of Valley Health System. "This was a good decision for Valley Health System, Kaiser Permanente and the communities we both serve--a deal that will benefit everyone."Kaiser Permanente intends to operate the 101-bed hospital as a community hospital serving residents of the community. Kaiser Permanente plans to make meaningful investments to improve the facility and advance technology at the hospital.
"The purchase of Moreno Valley Community Hospital is great news. Now, we can get down to the serious work ahead--to make the transition a smooth one for everyone involved. We have begun plans for building a medical office building near the hospital, and we are planning other longer-term efforts that will serve the people of Moreno Valley," said Vita Willett, Executive Director for Kaiser Permanente's Riverside service area.
The sale of Moreno Valley Community Hospital to Kaiser Permanente is part of a four-party transaction that also involves Select Healthcare and Valley Health System bondholders.
"We are working closely with the physicians who currently practice at Moreno Valley Community Hospital, and we have already contracted with many of the physicians at the hospital," said Richard Rajaratnam, M.D., FRCS, FACS, Medical Director for Kaiser Permanente-Southern California Permanente Medical Group (SCPMG) in Riverside County. "Together, we can share best practices and learn from one another as we move forward to continue providing excellent care for patients," he added.
ABOUT KAISER PERMANENTE:
Kaiser Permanente is America's leading integrated nonprofit health plan. Founded in 1945, Kaiser Permanente opened its medical center in Riverside in 1989, and currently provides care for over 272,000 members throughout the county. Over 400 physicians care for our members at 9 medical facilities and at Kaiser Permanente's Riverside Medical Center. The Riverside Medical Center has 215 licensed beds. To learn more, visit the web site at kaiserpermanente.org, or in Spanish, www.kaiserpermanente/espanol.org
ABOUT VALLEY HEALTH SYSTEM:
Valley Health System, a California Local Health Care District, owns and operates two acute care hospitals and a skilled nursing facility: Hemet Valley Medical Center, a 340-bed facility located in Hemet; Menifee Valley Medical Center, an 84-bed facility located in Sun City; and Hemet Valley HealthCare Center, a skilled nursing facility located in Hemet. Hemet Valley Medical Center opened its doors in 1943, and Menifee Valley Medical Center opened in 1989. To learn more, visit the web site at www.valleyhealthsystem.com.