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Prisma Health


Prisma Health is a not-for-profit healthcare organization headquartered in , formed in 2017 through the merger of the Greenville Health System and Palmetto Health. As South Carolina's largest private nonprofit , it operates 19 acute-care and specialty hospitals with 3,131 licensed beds, over 320 practice sites, and employs more than 32,000 team members, including 2,200 physicians. The organization serves over 1.6 million patients annually across a 21-county region in and parts of , providing services in , , heart care, orthopedics, , and . Prisma Health has pursued initiatives to transform healthcare delivery, including efforts to improve , prevent disease, expand access to services, and reduce costs through alternative payment models. It maintains academic affiliations, such as with the School of Medicine, supporting , with over 2,800 patients in clinical studies, and recognized by Fortune's 2025 list of America's Most Innovative Companies. However, the system has faced legal challenges, including a 2022 settlement of $1 million with the U.S. Department of Justice for alleged violations of the related to improper prescription filling, and ongoing disputes with insurers like UnitedHealthcare over contract terms and reimbursement rates that disrupted patient access in 2023-2024. A 2024 lawsuit alleges systemic overbilling of patients, highlighting tensions in billing practices.

History

Formation and Pre-Merger Background

The (GHS) originated from , a -owned facility established in the early , with formal roots tracing to the opening of in 1913. In 1947, the State Legislature passed Act 432, transforming it into a countywide system under an independent board of trustees, mandating service to all residents independent of or control. GHS expanded into a multi-campus , including flagship , becoming the largest employer in the Upstate region and a key provider of clinical care, education, and research. Palmetto Health was formed in February 1998 through the merger of Richland Memorial Hospital and Baptist Healthcare System of , creating a locally led not-for-profit system serving the . Richland Memorial Hospital had opened on March 4, 1972, as a 600-bed facility funded by voter-approved bonds, federal grants, and private contributions to address Columbia's growing healthcare needs. Baptist Healthcare System included facilities like Baptist Medical Center, with origins dating to South Carolina Baptist Hospital established in 1914. By the mid-2010s, Palmetto Health operated multiple hospitals, including Richland and Baptist, serving over 1.5 million patients across 21 counties. Facing financial pressures, regulatory changes, and the need for in a competitive healthcare landscape, GHS and Palmetto Health pursued collaboration. In June 2017, they announced a to form a joint operating company, which became operational in November 2017 as Health Company, integrating operations while maintaining separate brands initially. This structure laid the groundwork for the full and to Prisma Health in 2019, establishing 's largest not-for-profit health organization with 13 hospitals and extensive clinical services.

Key Mergers and Expansions

Prisma Health originated from the operational merger of Greenville Health System and Palmetto Health, which commenced in November 2017, forming South Carolina's largest health organization with 13 hospitals and over 1,300 licensed beds. The integration combined Greenville Health System's Upstate-focused operations, anchored by facilities like Greenville Memorial Hospital, with Palmetto Health's network, including Palmetto Health Baptist. This merger aimed to enhance clinical integration and resource sharing across a patient base exceeding 1.4 million annually. The unified entity rebranded as Prisma Health in early 2019, retaining not-for-profit status and emphasizing expanded service delivery. In March 2020, Prisma Health pursued an acquisition of in and in from to broaden its footprint, but the agreement terminated in April 2021 due to unresolved regulatory and operational challenges. On December 1, 2024, Prisma Health completed its first out-of-state expansion by acquiring Blount Memorial Hospital, a 304-bed facility in , marking entry into the market and adding specialized services like and orthopedics. Post-formation, Prisma Health undertook significant facility expansions, including a $350 million project at Greer Memorial Hospital announced in July 2025, which will more than double inpatient beds to 172, add specialized units for and , and expand emergency and surgical capacities, with site preparation starting that fall. In May 2025, groundbreaking occurred for a $138 million inpatient behavioral health hospital in the Upstate region, set to double the system's behavioral health capacity with 144 beds focused on comprehensive psychiatric care. These initiatives reflect strategic investments in to address growing demand in high-acuity areas.

Recent Developments Post-2020

In response to the , Prisma Health treated 33% of hospitalized patients in the Upstate and regions of during 2020, while providing 15% of statewide testing and leading regional response efforts. Post-pandemic, the organization shifted focus toward infrastructure expansion and operational enhancements, including a $350 million project at Greer Memorial Hospital announced in July 2025, which will double capacity, add state-of-the-art surgical suites, expand services, introduce new birthing suites, and include a $100 million medical office building, with construction phased for completion by early 2028. Similarly, in October 2025, Prisma Health opened the $128 million Northeast Medical Park in , a 120,000-square-foot facility featuring advanced specialty care, surgical services, and two Centers of Excellence to serve growing demand in the . Financial performance strengthened significantly after 2020, with 2024 operating reaching $6.4 billion, a 10.7% increase year-over-year, alongside total expenses of $6.1 billion, up 6.5%. Operating EBITDA margin improved to 8.6% in 2024 from 5.4% the prior year, driven by volume growth, better payor rates, , and $300 million in labor cost reductions. These gains prompted upgrades, including Fitch's affirmation at 'A' with a positive outlook in July 2024 and Moody's upgrade to 'A2' in July 2025, reflecting sustained and $450 million in margin improvements from systemwide transformations achieved ahead of schedule. Leadership transitions supported these initiatives, with appointments including Jennifer Montgomery as CEO of hospitals in May 2025, Jason Marx as president of the medical group in April 2025, Sharyl Smith as executive vice president and chief strategy officer in January 2025, and Anthony Jackson as senior vice president of service lines and chief community officer in July 2025. Additional developments included the August 2025 opening of a $7.5 million expanded pediatric hematology-oncology unit in Greenville, funded by and state support, and recognition such as ECRI's 2025 Excellence Award for disaster recovery enhancements and Fortune's 2025 list of America's Most Innovative Companies.

Organizational Structure and Operations

Leadership and Governance

Mark S. O'Halla has served as President and of Prisma Health since May 30, 2019, overseeing the not-for-profit health system's operations across , including 21 hospitals and more than 30,000 employees. Prior to this role, O'Halla held executive positions at Lee Health in and Norton Healthcare in , bringing experience in and growth strategies. The executive leadership team reports to O'Halla and includes key roles such as Executive Vice President and Matt Elsey, who manages financial operations and strategy; Executive Vice President and Chief Legal Officer Alexander Gladney, handling legal and compliance matters; and Executive Vice President and Clarence Sevillian, responsible for day-to-day operational efficiency. Regional leadership features specialized CEOs, including Jennifer Montgomery as CEO appointed on May 20, 2025, focusing on the system's four hospitals in that area, and Jason Marx, , MBA, as President of the Prisma Health Medical Group since March 31, 2025, overseeing one of the largest multispecialty physician groups in the state. Governance is directed by a corporate , chaired by Craig Brown, comprising community leaders, business executives, and healthcare professionals to ensure alignment with regional health needs and fiscal responsibility as a nonprofit entity. The board includes members such as Shaniece Criss, ScD, , ; Robert F. Dozier, elected in April 2024 with a background in ; Jean E. Duke; and Calvin H. Elam, CLU, ChFC, among others, with recent additions like S. Richard Hagins and Clay Lowder, MD, in June 2023 to broaden expertise in and clinical oversight. This structure emphasizes strategic decision-making, including mergers, expansions, and quality initiatives, while maintaining through duties and periodic elections.

Hospitals and Facilities

Prisma Health maintains a network of 19 hospitals, encompassing 12 acute-care facilities and additional specialty hospitals, with a total of 3,131 beds serving patients primarily in and . The system's hospitals are distributed across the Upstate, , and Western regions, providing a range of inpatient, outpatient, and emergency services. In the Upstate region of , key facilities include Prisma Health Greenville Memorial Hospital in Greenville, the system's flagship care center and a major ; Prisma Health Greer Memorial Hospital in Greer; Prisma Health Hillcrest Hospital in Simpsonville; Prisma Health Baptist Easley Hospital in Easley; Prisma Health North Greenville Hospital in Travelers Rest; Prisma Health Oconee Memorial Hospital in ; and Prisma Health Laurens County Hospital in . Prisma Health also operates a dedicated pediatric facility, Prisma Health , integrated within the Greenville Memorial , offering specialized care for infants, children, and adolescents across more than 35 subspecialties. The region features Prisma Health Richland Hospital in , a 641-bed regional center with advanced and capabilities; Prisma Health Baptist Hospital in ; Prisma Health Baptist Parkridge Hospital in ; and Prisma Health Tuomey Hospital in Sumter. These hospitals support comprehensive services including maternity care, with several recognized for high-quality by external evaluators. Beyond , Prisma Health affiliates with Blount Memorial Hospital in , expanding access in the eastern area. The system continues to develop specialized facilities, such as a new behavioral health hospital in Easley set to enhance services for children, teens, and adults in the Upstate. Outpatient facilities and practice offices complement the hospital network, numbering in the hundreds and focusing on , orthopedics, and other specialties.

Clinical Services and Specialties

Prisma Health delivers comprehensive clinical services across multiple specialties, encompassing , emergency services, , and advanced treatments in areas such as cancer, , , orthopedics, and . The system operates through a network of hospitals and outpatient facilities in , providing inpatient and outpatient care tailored to diverse patient needs. Key programs integrate behavioral health with via collaborative models in , , , and /gynecology clinics. In , Prisma Health offers specialized cancer care services, including treatment for various malignancies at dedicated centers within its hospitals. Cardiovascular services focus on heart care, with expertise in and related interventions available at facilities like Prisma Health Tuomey Hospital. programs address neurological conditions through advanced diagnostics and treatments, while orthopedics provides care for musculoskeletal disorders, including post-operative support for orthopedic admissions. Women's health services include , gynecology, and , with specialized units at hospitals such as Prisma Health Baptist Hospital. Pediatric care is a cornerstone, with Prisma Health Children's Services offering over 35 subspecialties, including , allergy and , , critical care, and developmental pediatrics, delivered at dedicated children's hospitals in Greenville and . Emergency services span adult and pediatric needs, supported by behavioral health programs that feature psychiatric evaluations, medication management, and day treatment interventions. Additional offerings include , specialty for complex medications, and surgical services across , general, and specialized procedures. These services emphasize patient-centered approaches, with recognition for practices demonstrating commitment to coordinated specialty care.

Financial Performance

Revenue Growth and Profitability

Prisma Health reported operating revenue of $6.4 billion for 2024 (ending September 30, 2024), marking a 10.7% increase from $6 billion in 2023. This growth outpaced expense increases, which rose 6.5% to $6.1 billion, driven by higher patient volumes and improved reimbursement rates amid post-pandemic recovery. Profitability strengthened significantly in 2024, with operating income reaching $311.3 million, equivalent to a 4.9% , compared to $67.1 million (approximately 1.1% margin) in 2023. also improved to 8.6% from 5.4% year-over-year, reflecting enhanced and $300 million in labor cost reductions implemented in prior periods. These metrics indicate a return to pre-COVID for the non-profit system, though earlier years (2020-2022) saw pressured margins due to pandemic-related volume disruptions and costs, with limited public disclosure on exact figures. The system's financial gains supported reinvestments in facilities and community benefits exceeding $1 billion annually, including charity care, while maintaining strong with over 180 days of cash on hand as affirmed by credit rating agencies. upgraded Prisma Health's issuer default rating to 'A' in June 2025, citing sustained volume growth and operational efficiencies as key to ongoing profitability.

Cost Management and Efficiency Initiatives

In partnership with Premier Inc., Prisma Health implemented a systemwide transformation initiative that achieved $450 million in savings over three years by fiscal 2025, primarily through , clinical alignment, and streamlined enterprise operations. This effort built a sustainable framework for ongoing value improvement, targeting an initial goal of $450 million over six years but accelerating results via integrated procurement and data-driven clinical enhancements. To boost operating performance in fiscal 2024, Prisma Health prioritized financial and operations improvement programs, including productivity enhancements that contributed to revenues of $6.4 billion (up 10.7% year-over-year) against expenses of $6.1 billion (up 6.5%). These measures encompassed optimization and process streamlining, following a 2020 restructuring that identified additional expense reductions, many affecting staffing levels, to position the organization for growth amid post-merger integration challenges. Prisma Health has also pursued technology-driven efficiencies, such as adopting fault detection diagnostic software across facilities to reduce with minimal upfront investment, yielding significant operational cost savings since 2020. In pharmacy operations, of CipherHealth tools in 2024 improved medication adherence and reduced costs by prioritizing high-value interventions. Broader strategies include transitioning to lower-cost platforms like outpatient and telehealth services, as noted in credit analyses, alongside efforts to minimize revenue leakage from unoptimized payer contracts, capturing 3-5% of annual net revenue opportunities. These initiatives earned Prisma Health the 2025 ECRI Health Technology Excellence Award for an project that enhanced reliability, reduced costs, and supported resilience during events like hurricanes, demonstrating measurable impacts on efficiency without compromising care quality.

Community Impact

Healthcare Access and Charity Care

Prisma Health offers financial assistance to eligible patients based on income relative to the federal poverty level (FPL), providing free care for those at or below 250% of the FPL and discounted care for those between 251% and 400% of the FPL. This policy applies to emergency and medically necessary services, with applications evaluated using household income, assets, and residency criteria. In 2023 (October 1, 2022–September 30, 2023), Prisma Health reported more than $1 billion in combined charity care, unreimbursed medical costs, and investments, including a net cost of $274.6 million for charity care and services. Total quantifiable community benefits reached $1.06 billion, representing 18.5% of operating expenses, with $122.9 million directed to support for community and health partners. For the Upstate region specifically, net costs of charity and services totaled $185.2 million, calculated using Catholic Health Association guidelines for comparability across health systems. In 2024, these figures increased slightly, with net charity and costs at $275 million and total community benefits at $1.196 billion, or 19.5% of operating expenses. To enhance access for uninsured and low-income residents, Prisma Health participates in AccessHealth networks, such as AccessHealth Greenville, which connect eligible individuals to medical homes, specialists, hospitals, services, and preventive resources based on income and residency screening. These programs address barriers for underserved populations by coordinating care for conditions like and , alongside substance abuse support and . Community health needs assessments, conducted triennially, inform resource allocation for access improvements through stakeholder input and surveys targeting rural and low-income areas. Recent expansions include a September 2025 initiative funded by a $1 million Department of Health and Human Services grant to broaden services in rural Laurens County via the Prisma Health Advanced clinic in , aiming to reduce geographic barriers in underserved regions. Additional efforts involve partnerships, such as the Bradshaw Institute for Community Child Health and Advocacy, which integrates medical-legal support to address social determinants affecting pediatric access. These measures align with Prisma Health's broader strategy to mitigate disparities in 's rural and urban communities.

Economic and Public Health Contributions

Prisma Health generates an annual economic impact of approximately $9.1 billion on the economy, encompassing direct operations, payroll, supply chain expenditures, and induced effects from employee spending. This impact supports 57,700 jobs statewide, including 28,000 direct positions within the organization, contributing to local tax revenues and regional economic multipliers in healthcare-related sectors. The organization's operating revenue reached $6.4 billion in recent fiscal years, funding expansions such as a $350 million project at Greer Memorial Hospital announced in 2025, which will add capacity for pediatric and cardiovascular services while stimulating and supplier activity. These investments enhance infrastructure and workforce development, with Prisma Health serving as a major employer in the Upstate and regions, where it operates across 21 counties. In , Prisma Health allocates over $1 billion annually to charity care, unreimbursed costs, and programs, addressing access barriers and preventive care needs identified in its Community Health Needs Assessments. Key initiatives include partnerships for healthy eating and strategies, such as collaborations with the Rise Up Richland to promote in underserved areas, alongside disease prevention efforts like drives and behavioral health outreach. These programs target clinical outcomes and metrics, with annual reports documenting sustained commitments to reducing chronic disease prevalence through evidence-based interventions.

Controversies and Legal Challenges

Medicare Billing Allegations

In 2015, Tuomey Healthcare System, a predecessor entity acquired by Palmetto Health (which later merged to form Prisma Health in 2019), settled allegations under the for submitting false claims in violation of the . The U.S. Department of Justice contended that Tuomey paid referring physicians compensation exceeding fair market value, inducing referrals for outpatient services that were then improperly billed to , resulting in over 21,000 false claims as determined by a federal jury. Originally facing a $237 million judgment, Tuomey agreed to pay $72.4 million to resolve the case, including penalties and , without admitting . As part of the settlement, Tuomey entered a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General, mandating enhanced compliance measures such as reporting mechanisms, training on federal healthcare laws, and independent reviews of physician arrangements to prevent future violations. Following Palmetto Health's acquisition of Tuomey in late 2015, these obligations informed Prisma Health's ongoing corporate compliance program, which includes mandatory education on the and whistleblower protections for employees and contractors. No subsequent Medicare-specific billing allegations or settlements have been publicly resolved against Prisma Health itself.

Acquisition Attempts and Antitrust Concerns

In March 2020, Prisma Health announced an agreement to acquire three hospitals from —Providence Hospital, Providence Hospital Northeast, and KershawHealth—along with a free-standing , aiming to expand its Midlands division in . The transaction, valued implicitly through a $10 million non-refundable deposit from Prisma, sought regulatory approval via 's Certificate of Public Advantage (COPA) process, which allows mergers to proceed with state oversight in lieu of federal antitrust review under the theory of promoting benefits over competitive harms. The Department of Health and Environmental Control (DHEC) initially approved the COPA in late , but the decision faced legal challenges from competitors alleging insufficient evidence of net public benefits and potential monopolistic effects in the and markets, where Prisma already held significant inpatient market share exceeding 50 percent. On January 29, 2021, an ruled against the COPA, finding that DHEC failed to adequately analyze anticompetitive risks, such as reduced bargaining power for payers and potential price increases, thereby invalidating the antitrust immunity. Concurrently, the () voiced substantial concerns, arguing the acquisition would exacerbate Prisma's dominance, harm competition in general services, and lead to higher costs without verifiable quality improvements, as evidenced in staff comments on similar COPA arrangements. Facing these regulatory hurdles, Prisma Health and terminated the agreement on April 9, 2021, with Prisma forfeiting its $10 million deposit; the hospitals were subsequently acquired by the (MUSC) in August 2021 after separate approvals. This episode highlighted broader antitrust scrutiny of Prisma's growth strategy, given its control over approximately 60 percent of South Carolina's hospital beds, prompting inquiries into how state COPA laws might undermine federal merger guidelines aimed at preserving competition in concentrated healthcare markets. No further major acquisition attempts by Prisma have faced similar public antitrust challenges as of 2025, though its 2024 partnership with Blount Memorial Hospital in proceeded without noted federal opposition.

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