California AG Blocks Hospital Sale

California’s Attorney General’s office Wednesday blocked the proposed $55 million sale of Anaheim Memorial Medical Center to Prime Healthcare Services, Inc.

James Humes, Chief Deputy Attorney General, said in a letter to Prime Healthcare that the deal could not be approved by the office because of doubts concerning the dismal of rival bids for the hospital, according to the Orange County Business Journal.  Humes said that while Prime Healthcare’s bid “is fair to Anaheim, reflects fair market value…and is consistent with the public interest,” his office was concerned that other interested bidders had showed a possible willingness to pay substantially more, but that those bids were either withdrawn or rejected by Anaheim Memorial “for reasons that are uncertain or disputed.”

Humes also said that he feared the other bidders were not treated the same as Prime Healthcare and did not have equal access to relevant information.

Prime Healthcare, based in Victorville, CA, proposed the deal for Anaheim Memorial in February of this year.