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Hospital network pledges to expand ER, continue providing all current services, invest in facility improvements and maintain commitment to poor and uninsured

On Nov. 17, 2010, Prime Healthcare Services, Inc. ("Prime Healthcare”), which owns and/or operates 13 acute care hospitals in California, announced the acquisition of Alvarado Hospital ("Alvarado”) in San Diego from Plymouth Health, a privately-held, Los Angeles-based company that has owned and operated the hospital since January 2007.

Prime Healthcare will continue to operate Alvarado as an acute care hospital with an open and improved emergency department. The Company said it looks forward to working with Alvarado’s 450 physicians, 1000 employees and 400 volunteers to provide the highest quality patient care.

Prime Healthcare also owns and operates Paradise Valley Hospital in National City, CA, a 105-year-old institution it acquired from Adventist Health in 2007. Two of Prime Healthcare’s hospitals were named among this year’s Top 100 by Thompson Reuters.

"We are pleased that Plymouth Health elected to sell Alvarado to Prime Healthcare, a Top 10 Health System in the nation, to carry on its commitment to provide physician managed quality healthcare at Alvarado”, said Prem Reddy, MD, FACC, FCCP, Prime Healthcare’s Chairman of the Board. "We will not only uphold Plymouth’s commitment to high quality care, but also enhance the quality outcomes in a cost-effective manner.”

According to Dr. Pejman Salimpour, one of the principals of Plymouth Health, the decision to sell the hospital was a difficult one. "In the past several years, we have invested millions of dollars in equipment and resources to reinforce Alvarado’s services to the community. We have also attracted a number of the top physicians in their fields to bring their considerable talents to Alvarado. As a result, the hospital has significantly improved at all levels: medically, operationally, and financially. We want to thank everyone at the hospital for their many contributions and support.”

"However, despite these successes, we do not believe that the business model of the stand-alone hospital is viable in today’s changing healthcare arena. We wanted to ensure that Alvarado could continue to provide much-needed services to the people of San Diego, and our best solution was to seek a large, proven California healthcare system. We believe that Prime Healthcare has the resources and expertise to continue the high-quality care and specialty services that are the hallmarks of this hospital.”

Alvarado will continue to operate "as-is” providing all aspects of patient care including its most renowned physicians, all the nursing and other supportive staff, and maintenance of all health plan contracts.

About Alvarado Hospital

Alvarado Hospital has been serving San Diego since 1972 providing healthcare to a growing population in both San Diego and Imperial counties. Physicians on the hospital's medical staff receive patients from local communities, but also worldwide. Alvarado Hospital’s programs include cardiac services, emergency medicine services, neuroscience, orthopedics, oncology, rehabilitation, general surgical services, sexual medicine, skull-base surgery, sleep center, surgical and medical weight reduction, and vascular services. Alvarado Hospital offers advanced, specialized healthcare services with more than 450 dedicated physicians, representing more than 40 medical and surgical specialties, 1,000 employees and 400 active volunteers. The hospital is conveniently located just off Interstate 8 and adjacent to San Diego State University.

About Prime Healthcare Services

Prime Healthcare Services, Victorville, CA, is a progressive, innovative and rapidly expanding hospital management company in Southern California. The mission of PHS is to provide comprehensive quality healthcare in a compassionate, convenient and cost-effective manner. With more than 8,000 employees, PHS, by and through its subsidiaries, currently owns and operates twelve acute care hospitals: Centinela Hospital Medical in Inglewood (369-beds), Chino Valley Medical Center in Chino (126- beds), Desert Valley Hospital in Victorville (83-beds), Garden Grove Hospital Medical Center in Garden Grove (167-beds), Huntington Beach Hospital in Huntington Beach (131-beds), La Palma Intercommunity Hospital in La Palma (141-beds), Montclair Hospital Medical Center in Montclair (102-beds), Paradise Valley Hospital in National City (301-beds), San Dimas Community Hospital in San Dimas (93-beds), Shasta Regional Medical Center (246-beds) in Redding, Sherman Oaks Hospital in Sherman Oaks (153-beds), and West Anaheim Medical Center in Anaheim (219-beds) in California. Prime HealthCare Services Foundation owns and operates Encino Hospital Medical Center (151-beds) in Encino, California. For more information, please visit