Washington health system finalizes deal with MultiCare to exit bankruptcy

Sunnyside, Wash.-based Astria Health announced Jan. 15 that it has completed a transaction with Tacoma, Wash.-based MultiCare Health System to refinance substantially all of Astria's long-term debt. 

Astria filed for Chapter 11 bankruptcy in May 2019, and the bankruptcy court approved the recent transaction with MultiCare. 

After selling the closed-down Astria Regional Medical Center in Yakima, Wash., for $20 million in December, Astria Health comprises the 38-bed Sunnyside (Wash.) Hospital and 63-bed Toppenish (Wash.) Hospital. The hospitals in Sunnyside and Toppenish have obtained long-term exit financing through the bankruptcy plan. 

"Astria Health leadership teams and employees are thrilled about the partnership with MultiCare Health Systems," said Brian Gibbons Jr., acting president of Sunnyside Hospital. "We believe this relationship will strengthen our service offerings and enhance our presence in the Yakima Valley."

Mr. Gibbons also thanked Lapis Advisers, a Larkspur, Calif.-based investment advisory firm that helped Astria navigate the steps to finalize the deal. 

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