Dive Brief:

• The proposed sale of six California hospitals to Prime Healthcare drew hundreds of protesters and supporters to O'Connor Hospital on Wednesday. California's attorney general must decide whether to give the go ahead to the deal by Feb. 6.
• Ontario-based Prime is seeking to buy O'Connor; Saint Louise Regional Hospital in Gilroy; Seton Medical Center in Daly City; Seton Coastside in Moss Beach; and two hospitals in Los Angeles. All six are operated by the Daughters of Charity Health System.
• More than 650 people attempted make their case about the Daughters of Charity decision to sell the hospitals. Those who opposed the deal said it wouldn't be good for patients or the community. Supporters of the sale included a larger group from the California Nurses Association.

Dive Insight:

Proposed mergers always raise trust issues and concerns over patient care. And should Prime win its bid, opponents won't go out without a howl. Service Employees International Union contends Prime has a history of gutting services for low-income patients and slashing workers' pay and benefits, according to reports. There's also an ongoing investigation into Prime based on allegations of over-billing Medicare. On the other hand, Prime has agreed to keep the six hospitals open for at least five years, maintain their charity care, assume about $350 million in pension debt and spend $400 million to pay off the chain's tax-exempt bonds and other liabilities. The organization also committed to spending $150 million to update the facilities and equipment and keep as many of Daughters' 7,600 jobs as possible.