Business Services Industry
Prospect Medical Holdings Acquires Majority Ownership in Highly Regarded Brotman Medical Center
Business Wire, April 14, 2009
Proven Strategies Combine with Shared Commitment
Sam Lee, Chairman and Chief Executive Officer of Prospect, and Chairman of Brotman commented, “The story of Brotman’s turnaround is, we believe, a noteworthy success that can be shared by our physicians and a variety of committed stakeholders. Prospect’s new management team, Brotman’s medical, administrative and other staff, and many others worked together to reshape and refine Brotman’s operations over the past 18 months, while putting the facility on a path to optimize its vast potential. We instituted many of the same principles that have substantially improved the operations of our other businesses. For nearly 18 months, Brotman is now consistently operating profitably for the first time in several years and we expect this to continue to improve. Hospital census data, as well as many other key operating metrics, rose steadily during the reorganization process and continue to improve, although there is still much work to be done.”
Stan Otake, Chief Executive Officer of Brotman, stated, “This is more than a financial success story. The importance of access to quality health care on a community’s ability to grow and prosper cannot be understated. For more than 85 years, Brotman has served as a vital institutional anchor to the dynamic and evolving West Los Angeles community. I want to thank the Governing Board of Brotman, our physicians, nurses, administrators and staff for their tireless efforts and dedication to the cause. I would also like to thank JHA and Gemino for their financial commitment and support of our vision. During a time when community hospitals are rapidly disappearing, Brotman’s survival and positive outlook are sources of much pride for all of us.”
Additional Financial Information
Effective April 14, 2009, Prospect began consolidating Brotman into its financial statements and expects to publish standalone Brotman audited and unaudited financial statements and pro forma financial information by no later than June 30, 2009.
ABOUT PROSPECT MEDICAL HOLDINGS
Prospect Medical Holdings operates five community-based hospitals in the greater Los Angeles area and manages the medical care of individuals enrolled in HMO plans in Southern California, through a network of approximately 14,000 specialist and primary care physicians.
This press release contains forward-looking statements. Additional written or oral forward-looking statements may be made by Prospect from time to time, in filings with the Securities and Exchange Commission, or otherwise. Statements contained herein that are not historical facts are forward-looking statements. Investors are cautioned that forward-looking statements, including the statements regarding anticipated or expected results, involve risks and uncertainties which may affect the Company's business and prospects, including those outlined in Prospect's Form 10-K filed on December 29, 2008, as well as risks and uncertainties arising from Prospect's acquisition of Alta and ProMed, and the debt incurred by Prospect in connection with those acquisitions. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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