- South Miami-based Larkin Community Hospital paid $40 million to acquire privately held Palm Springs General Hospital.
- Besides the 247-bed hospital, the deal includes a 43,000-square-foot medical office building that sits on the 15-acre campus.
- The deal expands Larkin’s reach into the Miami-Dade community of North Miami.
This is Larkin’s third acquisition. In June 2015, the for-profit teaching hospital purchased Hollywood Hills Rehab Center for an undisclosed sum, followed one month later by the purchase of Hollywood Pavilion Psychiatric Hospital for $24.6 million.
Larkin, which rescued Hollywood Pavilion — now called Larkin Community Hospital Behavioral Health — from bankruptcy, played the white knight again when it plucked Palm Springs General from an earlier failed acquisition. The Miami-Dade hospital terminated a $63 million deal with IHS Hialeah, claiming the suitor lacked the funds to close the deal.
IHS Hialeah subsequently sued Palm Springs General, which last year lost $764,855 on net operating revenue of $60.4 million, the South Florida Business Journal reported.
“The healthcare industry in the United States is going through a significant transformation. We need to adapt to be able to deal with new challenges and to best take advantage of new opportunities,” Larkin Chairman and President Jack Michel said in a letter posted on the hospital’s Facebook page. “Never again should this hospital go through what transpired last year.”
With the acquisition, Larkin’s capacity grows to 775 beds — 443 in acute care, 152 in skilled nursing and 180 in assisted living. The hospital had over $120 million in revenues in 2015.