Los Altos Hills, CA -February 8, 2010
The Daughters of Charity Health System (DCHS) has moved into exclusive negotiations regarding the potential acquisition of Downey Regional Medical Center in Downey, CA. Downey Regional Medical Center is a 199-bed, not-for-profit hospital serving Southeast Los Angeles County. Should the negotiations result in an ultimate acquisition, Downey would become a member of DCHS, a not for profit, regional health system based in Los Altos Hills, CA with hospitals in northern and southern California.
According to Rob Fuller, executive vice president and chief operating officer, on February 2 the Downey Regional Medical Center-Hospital, Inc. and the Downey Regional Medical Center, Inc. Boards of Directors unanimously voted to authorize management to execute a letter of intent for affiliation of Downey Regional Medical Center with Daughters of Charity Health System.
Downey Regional Medical Center filed Chapter 11 bankruptcy in September 2009. Downey Regional Medical Center considered affiliation opportunities with a number of health systems, as well as other potential transactions that could provide the resources necessary to emerge from the bankruptcy process, with Daughters of Charity Health System emerging as the top contender.
“We look forward to continuing discussions with Downey Regional Medical Center. Their tradition of providing compassionate care and service to the Downey community aligned with our Catholic health care mission of serving the sick and the poor,” said DCHS President & CEO Robert Issai. “While the details of our discussions are confidential, we are excited by the benefits this potential affiliation will provide to all residents of Downey and beyond.”
“Given the complexity of the transaction and the requirements of Chapter 11, the process may take several months,” said Fuller. “The primary goals of the proposed transaction include ensuring an ongoing, vibrant hospital presence in Downey to serve the entire community regardless of financial status. This potential acquisition will allow us to continue operating Downey Regional Medical Center on a charitable, not-for-profit basis.”
According to Issai, “We will work collaboratively with leadership, medical staff and community members to build a future for Downey Regional Medical Center as a mission-driven, financially sound, high quality health care organization. Along with St. Francis Medical Center, Downey Regional is one of the few remaining hospitals serving Southeast Los Angeles.” Many physicians on the medical staff of Downey Regional Medical Center are already familiar with DCHS because they are long-serving members of the medical staff at St. Francis Medical Center, a DCHS hospital located five miles away in Lynwood.
“Downey employees and medical staff are hopeful that we will become officially affiliated with Daughters of Charity Health System in late spring, as a strong member of this hospital group,” said Fuller.