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Gadsden's Riverview Regional Medical Center. (William Thornton / wthornton@al.com)
GADSDEN, Alabama -- Prime Healthcare Services is purchasing Riverview Regional Medical Center from Community Health Systems.
In a news release today, an agreement was announced which includes the 281-bed hospital and its outpatient services. The financial terms of the sale were not disclosed.
All employees "who satisfy Prime's employment requirements" will continue to be employed, and there will be no change to privileges for physicians on the staff, the release said.
Prime will also fund $15 million in capital expenditures to the hospital over the next three years after the sale, along with development of new services, physician recruitment and other improvements.
Jim Edmondson, CEO of Riverview, said the hospital is "committed to our community and pleased that Prime Healthcare recognizes our achievements as well as our opportunities for continued success in the future."
The agreement includes a commitment to operate as an acute care hospital with an open and accessible emergency room for a period of at least five years after the sale, the release stated.
Community Health Systems, the second-largest for-profit U.S. hospital operator, announced in July 2013 that it would buy Health Management, which owned Riverview. Last January, the Federal Trade Commission announced it would allow CHS to buy HMA, provided CHS sold two hospitals, including Riverview.
Prime Healthcare Services currently operates 29 hospitals. Riverview Regional Medical Center will become its first hospital in Alabama.