Bankrupt California hospital chain closes $235M sale

Ayla Ellison (Twitter | Google+) - Print  | 

El Segundo, Calif.-based Verity Health, which entered Chapter 11 bankruptcy protection in August, completed the sale of two California hospitals on March 1, according to NBC Bay Area.

In December, the bankruptcy court approved Santa Clara County's $235 million offer to buy O'Connor Hospital in San Jose and St. Louise Regional Hospital in Gilroy from Verity. State Attorney General Xavier Becerra filed a petition to suspend the sale in early January because Santa Clara County did not agree to conditions put in place in 2015 when private hedge fund BlueMountain Capital acquired six hospitals owned by Los Altos, Calif.-based Daughters of Charity Health System. The deal and name change to Verity were approved, subject to several conditions including that O'Connor Hospital and St. Louise Regional operate as acute care hospitals and offer emergency services for 10 years.

The district court rejected Mr. Becerra's attempt to block the transaction, ruling that he did not have authority over the sale.

The transaction, which also includes the purchase of an urgent care center, closed March 1.

"This acquisition is truly a win-win for the community," Joe Simitian, president of the Santa Clara County board of supervisors, said in a statement to NBC Bay Area. "It prevents the closure of two critically important hospitals and ensures continued access to medical services for those who need it, regardless of ability to pay."

More articles on healthcare industry transactions:

CHS sells 4 South Carolina hospitals for $176M
Beth Israel Deaconess-Lahey Health merger is official
Illinois hospitals end merger talks

 

 

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