6-hospital California system explores sale to ease financial pressure

Alyssa Rege - Print  | 

El Segundo, Calif.-based Verity Health is exploring strategic options, including a potential sale, to minimize financial and operational pressures, the six-hospital nonprofit system announced July 9.

Officials said they are considering a range of options, including the sale of some or all of its locations, among other potential transactions. The health system has not made any decisions regarding a potential transaction.

"The top priority of Verity's board and management team is to establish a long-term, sustainable path forward for our hospitals, which are of critical importance to the communities they serve," said Rich Adcock, CEO of Verity Health. "We are exploring a number of options to deleverage our balance sheet and address challenges our hospitals face after a decade of deferred maintenance, poor payor contracts, and increasing costs."

Verity Health was formed in December 2015. In July 2017, billionaire entrepreneur Patrick Soon-Shiong's, MD, company NantWorks acquired a majority stake in Integrity Healthcare, which manages Verity Health. Dr. Soon-Shiong also served as CEO of the health system from July 2017 until earlier this year.

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