Verity, which entered Chapter 11 bankruptcy in 2018, filed a motion with the bankruptcy court March 29, seeking approval for the sale. Under the proposed transaction, Verity would sell Seton Medical Center in Daly City, Calif., and Seton Coastside in Moss Beach, Calif., to AHMC for $40 million. The agreement also includes a commitment by AHMC to continue to support the state’s efforts to address the COVID-19 pandemic.
The proposed deal comes after California Gov. Gavin Newson announced March 21 that the state will use $30 million in emergency funding to lease Seton Medical Center and St. Vincent Medical Center in Los Angeles, which Verity closed in January. The state is leasing the hospitals for three months to expand capacity for COVID-19 patients.
More articles on healthcare industry transactions:
6 health systems compete for bigger footprint in North Carolina
VCU Health to acquire 67-bed hospital
619-bed California hospital to join Cedars-Sinai Health System
