California inks $30M lease deal to add 486 hospital beds for COVID-19 patients

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California will use $30 million in emergency coronavirus funding to lease two hospitals, one of which is currently shut down, according to an announcement from Gov. Gavin Newsom.

The state will lease Seton Medical Center in Daly City, Calif., and St. Vincent Medical Center in Los Angeles for three months. Both hospitals are owned by El Segundo, Calif.-based Verity Health System, which entered Chapter 11 bankruptcy in August 2018.

Verity closed St. Vincent Medical Center in January after a deal to sell the hospital and three others fell through. Mr. Newsom said emergency funding will be used to reopen the hospital "as soon as possible." St. Vincent can provide care to up to 366 COVID-19 patients.

Seton Medical Center, which was on the verge of closing earlier this month, will expand capacity to provide care to up to 120 COVID-19 patients as soon as March 25, Mr. Newsom said. Verity will operate the facility on the state's behalf.

"We are pleased to be able to partner with the State of California to address this pressing public health need," Verity CEO Rich Adcock said in a news release. "We continue to be committed to supporting our staff, our patients and the communities we serve through this challenging time."

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