Press Release Knapp Medical - Prime Healthcare Services Foundation
WESLACO, TEXAS - Seale & Associates, Inc. ("Seale") announced that it acted as financial advisor to Knapp Medical Center ("KMC"), on its transfer of a controlling interest to Prime Healthcare Services Foundation ("PHSF"). Under the terms of the agreement, KMC will continue to operate as a not-for-profit acute care hospital with the same charity programs currently in place. PHSF has also committed to invest at least US$10 million in capital improvements in KMC. As a result of the transaction, Knapp Community Care Foundation, a new not-for-profit community foundation was funded with approximately US$100 million to expand and improve access to healthcare for medically underserved populations in the surrounding communities. The transaction closed on January 2, 2013.
"We are very pleased to have successfully completed a transaction with Prime Healthcare Services Foundation as part of our efforts to strengthen Knapp Medical Center to meet the complex challenges facing stand-alone hospitals in a competitive and rapidly changing U.S. healthcare system," stated John Lackey, Chairman of Knapp Medical Center. "Seale provided our Board with valuable support and guidance throughout the process as we evaluated the full range of strategic alternatives available to Knapp and helped us to execute a disciplined process to ensure the Board's objectives of securing the long-term future of our community hospital were met. Seale was a forceful advocate and demonstrated perseverance structuring both a for-profit transaction option and ultimately a not-for-profit partnership. Without reservation, I would recommend Seale as a trusted advisor to the Board of Directors of any hospital facing similar challenges as we faced in our community."
Knapp Medical Center is a not-for-profit 227-bed acute care hospital serving the Mid-Valley region in South Texas that opened on January 2, 1962. The hospital offers a variety of healthcare services including cardiopulmonary, critical care/ICU, neurological care, pediatrics, imaging, outpatient, women's health, surgical, rehabilitation, hospice care, gastroenterology, and others. KMC has won numerous awards for patient quality and information technology, including being recognized in the Top 5% of Hospitals in the U.S. for Maternity Care and Top 10% in the U.S. for Joint Replacement. KMC is served by more than 200 general and specialty physicians and is one of Hidalgo County's largest employers with approximately 1,000 employees.
Prime Healthcare Services Foundation is a 501c(3) non-profit public charity formed in 2006 by Prem Reddy, MD, FACC, FCCP, Chairman of the board, Founder and CEO of Prime Healthcare Services. PHSF owns and operates five non-profit acute care hospitals in California and Texas. Prime Healthcare Services, headquartered in Ontario, California, is a progressive, innovative and rapidly expanding hospital management company. With more than 16,000 employees, Prime Healthcare, by and through its subsidiaries, owns and/or operates 21 acute care hospitals in California, Nevada, Texas and Pennsylvania. Prime Healthcare was recognized as the "Top 15 Health System in the Nation" in 2012 and the "Top 10 Health System in the Nation" in 2009 by Thomson Reuters.
Seale & Associates, Inc., headquartered in Arlington, Virginia, is a global investment banking firm with extensive experience in mergers and acquisitions, corporate finance advisory, and enterprise level strategy consulting. Our professionals are trusted advisors maintaining a high level of quality and integrity while presenting innovative ideas and solutions to address our clients' most complex dealings.