Contrary to remarks made during a Monday interview with the Dispatch, healthcare giant Kaiser Permanente has not taken an about-face and rescinded its official opposition to the transfer of Daughters of Charity hospitals to for-profit Prime Healthcare.
“In an interview…Prime Healthcare stated that Kaiser Permanente had agreed to support Prime Healthcare’s bid to purchase several Daughters of Charity hospitals. This was not an accurate statement of the agreement reached between the parties,” Prime Communications Director Edward Barrera said in a statement.
Dr. Prem Reddy, founder and president of Prime, told the Dispatch in a phone interview with Editor Jack Foley Monday that Kaiser had agreed to retract its signature on a letter also signed by 18 elected representatives, one sent to California Attorney General Kamala Harris, expressing opposition to the purchase.
“Prime wishes to now make clear that Kaiser Permanente agreed only to advise the Attorney General’s Office it had entered into a hospital services agreement with Prime…designed to address on a going forward basis concerns raised by Kaiser (in the December letter to Attorney General Kamala Harris),” the statement reads.
During the interview, Reddy said the Kaiser Foundation Health Plan, Inc. and Prime have also agreed to dismiss lawsuits against each other for unfair competition, breach of contract and other claims that have been floating around since 2008 in Los Angeles Superior Court.
Kaiser confirmed both companies agreed to dismiss their respective lawsuits, but clarified in a press release Kaiser does not support the acquisition of the Daughters of Charity Health System by Prime.
The Service Employees International Union—United Healthcare Workers, whose leadership strongly opposes Prime as a buyer, said Reddy’s “false announcement” is “yet another example of Prime trying to mislead the public,” Union President Dave Regan said Tuesday in a press release.
“Prime simply cannot tell the truth and Mr. Reddy could not have done anything more to demonstrate why he can’t be trusted, on this issue or his pledge to continue the community mission of the Daughters of Charity hospitals,” Regan continued.
“Prime Healthcare regrets any confusion caused by its prior statement,” Barrera said.
