Anaheim Memorial sale blocked
Dr. Prem Reddy had offered $55 million for the 224-bed hospital.
BY COURTNEY PERKES
The Orange County Register
The state Attorney General's office announced today that hospital owner Dr. Prem Reddy will not be allowed to buy Anaheim Memorial Medical Center.
State officials must approve the conversion of nonprofit hospitals to for-profit operations like those owned by Reddy, including West Anaheim Medical Center, Huntington Beach Hospital and La Palma Intercommunity.
In a letter posted late today on the Attorney General's Web site, Chief Deputy James Humes said he could not conclude that the sale was consistent with public interest. Humes noted that some alternative bidders had indicated "tentative willingness to pay substantially more for Anaheim than offered by Prime (Healthcare Services)."
In February, Memorial Health Services agreed to sell Reddy the hospital for $55 million. Last month, the state held a hearing on the proposed sale that drew more than 200 people.
Some community members and union representatives spoke out against the sale because they feared quality would decline if the hospital was no longer nonprofit.
Reddy said the state's decision has nothing to do with the quality of his operations.
"I support the decision of the Attorney General and I hope they will reopen the bidding process," Reddy said. "And if they do, Prime Healthcare Services will be there to meet the challenges."
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