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California hospital sells for $2M

The American Advanced Management Group has completed its purchase of Sonoma Specialty Hospital in Sebastopol, Calif., from the Palm Drive Health Care District, according to Sonoma West Times & News.

Though Sonoma Specialty Hospital has an adjusted appraised value of more than $5 million, AAMG paid only $2 million in cash for the hospital. Modesto, Calif.-based AAMG, which has been operating the hospital since September 2018, was able to negotiate the lower purchase price because it also agreed to clear all debt it is owed by the healthcare district.

The Palm Drive Health Care District has a few options now that the hospital has been sold. Some on the board want to dissolve the district completely, while others want to maintain the health district to collect parcel taxes and distribute any excess funds as grants to local health programs, according to the report.

More articles on healthcare industry transactions:

Proposed mergers would combine 34 Louisiana hospitals
Private equity firm sets sights on Quorum Health
1,250 healthcare deals have been announced, completed this year

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