8/4/2019 PHSF Statement on Victor Valley

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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 immediateand dire impact on the needs of an already-underserved High Desert community.

The Foundations fully qualified and exhaustively vetted offer to purchase and operateVictor Valley Community Hospital as a nonprofit community hospital was accepted bythe 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 recommendedapproval of the sale with conditions, and Prime Healthcare Services Foundation hadagreed to every single condition. Through her decision, the Attorney General has positedthat she knows more about what is good for the hospital than those who govern thehospital 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 offeremployment to nearly all of Victor Valleys existing employees and provide the same (orgreater) levels of charity care as it has historically provided. The Foundation alsocommitted to form a local governing board consisting of local physicians and communitymembers with input from the hospitals current board of directors.

The Foundation had also pledged to invest no less than $25 million for capitalimprovements, information technology, infrastructure improvements, and/or workingcapital 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 apolitical light. Without giving any specific reasons for the denial, she clearly has chosento use the legal authority of her office to make league with one particular labororganization that has been running a blatantly false smear campaign of vilification againsthospitals operated by Prime Healthcare.

Prime Healthcare Services Foundation

The Foundation is a nonprofit public charity that was founded by Dr. Prem Reddy and hisfamily 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 donatedmore than $350 million to charity over the years. The Foundation owns and operates twononprofit hospitals, Encino Hospital Medical Center and Montclair Hospital MedicalCenter (a Top 100 Hospital in the Nation in 2009), and is governed by an independentBoard of Directors. Both hospitals were recently recognized as Top Performers in theNation (Top 14%) on Key Quality Measures by Joint Commission, a Medicareaccreditation agency.

8/4/2019 PHSF Statement on Victor Valley

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