2013-01-03 Prime Healthcare Foundation Enters Into Agreement With Texas-Based Knapp Medical Center
The non-profit Prime Healthcare Foundation announced today that it has obtained a controlling interest in Knapp Medical Center, located in Weslaco, Texas. The Center will continue to operate as a non-profit.
Under the terms of the agreement, Knapp Medical Center will continue to operate as an acute care hospital with the same charity care programs currently in place, and Prime Healthcare will invest at least $10 million in capital improvements.
“The Prime Healthcare Foundation will continue the mission of Knapp Medical Center and help it become one of the best hospitals in the state and nation,” said Prem Reddy, MD, FACC, FCCP, Prime Healthcare Foundation’s founder and President. “The decision to keep Knapp Medical Center non-profit, and join it with the Foundation’s four other non-profit hospitals, was based on our desire to better serve the residents and the surrounding communities that rely on it for quality healthcare.”
Prime Healthcare Services and Prime Healthcare Foundation operate 20 acute care hospitals in four different states with more than 3,700 licensed beds, employing more than 15,000 individuals and was recognized as a Top 15 Health System in the Nation in 2012 by Thomson Reuters.
As a result of the inclusion of Knapp into the Prime Healthcare Foundation system, a new not-for-profit community foundation has been formed. Funded with approximately $100 million, the Knapp Community Cares Foundation (KCCF) will seek to expand and improve access to healthcare for medically underserved populations in the area.
“Through this agreement, Knapp will affiliate with a large, financially strong healthcare system and reap the economies of scale necessary to survive in the evolving healthcare environment,” said John Lackey, Chairman of the Board for Knapp Medical Center. “Over the last few years, the hospital board has continuously and openly expressed its interest in finding a solution to the financial challenges that have affected standalone hospitals. We are excited about the long-term stability and financial security this transaction brings to Knapp Medical Center.”