The foundation created by Dr. Soon Shiong, the billionaire owner of the Los Angeles Times and inventor of cancer drug, Abraxane, placed a $135 million bid to acquire St. Vincent Medical Center in Los Angeles from El Segundo, Calif.-based Verity Health. Verity filed for Chapter 11 bankruptcy in 2018 and closed 366-bed St. Vincent Medical Center in January.
On March 31, a bankruptcy judge approved the foundation as the lead bidder to acquire the shuttered hospital. Other bidders can challenge the foundation’s offer until April 3, according to WSJ. A final hearing on the sale is slated for next week.
If the foundation acquires the hospital, the goal is to turn the facility into a “central command” center for COVID-19, Dr. Soon-Shiong told the Los Angeles Times. The hospital would help relieve pressure on other medical centers in the area facing a surge of patients and serve as a research facility for physicians and experts on COVID-19, according to the report.
The proposed deal comes after California Gov. Gavin Newsom announced March 21 that the state will use $30 million in emergency funding to lease St. Vincent Medical Center and Seton Medical Center in Daly City, Calif., which is also owned by Verity. Dr. Soon-Shiong’s foundation said it would take over the state’s lease obligations at St. Vincent if the deal is approved, according to WSJ.
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