Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Verity continues hospital divestiture spree with $40M deal

A bankruptcy judge has signed off on AHMC Healthcare's $40 million offer to buy two California hospitals from Verity Health, according to The Wall Street Journal

El Segundo, Calif.-based Verity, which entered Chapter 11 bankruptcy in 2018, filed a motion with the bankruptcy court in late March seeking approval for the sale of Seton Medical Center in Daly City, Calif., and Seton Coastside in Moss Beach, Calif., to AHMC for $40 million. Judge Ernest M. Robles of the U.S. Bankruptcy Court in Los Angeles said April 22 that he would approve the transaction. 

Under the agreement, AHMC will keep both hospitals open and support the state's efforts to address the COVID-19 pandemic. The deal comes after California Gov. Gavin Newsom announced March 21 that the state would use $30 million in emergency funding to lease Seton Medical Center and St. Vincent Medical Center in Los Angeles, which Verity closed in January. 

St. Vincent reopened as a COVID-19 treatment center April 13. Less than a week later, Verity sold St. Vincent to Patrick Soon-Shiong, MD, the billionaire owner of the Los Angeles Times. The health system is also selling St. Francis Medical Center in Lynwood, Calif., to Ontario, Calif.-based Prime Healthcare Services. The sale was approved by the bankruptcy court April 9. 

More articles on healthcare industry transactions:
CHS to sell Texas hospital
Advocate Aurora Health to sell 2 Illinois hospitals for $190M
North Carolina health systems call off partnership talks

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers