Attorney General OKs deal to buy St. Francis centers
The deal is expected to close by end of year
The acquisition of St. Francis Medical Centers by a group of local doctors and a Kansas investor has won approval from the state Attorney General.
Hawaii Medical Center LLC, composed of the Wichita-based Cardiovascular Hospitals of America and a local physicians group led by St. Francis cardiologist Danelo Canete, has moved another step closer to the completion of its $68 million acquisition. St. Francis announced the approval yesterday.
A group of 125 physicians banded together with the Kansas group last year to announce plans to buy St. Francis Medical Center-Liliha and St. Francis Medical Center-West from St. Francis Healthcare System of Hawaii.
Attorney General Mark Bennett said a review of the application is required by law. The application was reviewed by investment firm Cain Brothers.
"We concluded that the acquisition was in the public interest, and that fair value is being paid for the assets of St. Francis Medical Centers," Bennett said. "We retained an expert in valuation, and in part our approval was based on the opinions of our expert."
Three review panels of the State Health Planning and Development Agency already have recommended approval of the group's application.
Hawaii Medical Center LLC awaits the approval of SHPDA and the U.S. Department of Justice before the transfer of ownership can be finalized.
The transaction is expected to close by the end of this year.
"We are delighted by his decision, which confirmed that a fair price would be paid for the acquisition and that the public interest would be preserved," said Canete, president and CEO of Hawaii Medical Center.
Sister Agnelle Ching, CEO of St. Francis Healthcare System, said St. Francis was pleased with the approval.