by Thomas Dworetzky
, Contributing Reporter | April 30, 2020
Nonprofit healthcare system Verity Health announced this week that the U.S. Bankruptcy Court in Los Angeles approved its sale of Seton Medical Center in Daly City, California, and Seton Coastside in Moss Beach, California, to AHMC Healthcare.
The deal for the pair will fetch $40 million, according to a Verity statement.
“Seton and Seton Coastside are integral to the health and well-being of the communities they have served for many decades,” stressed Rich Adcock, CEO of Verity Health.
AHMC plans to collaborate with the Allied Physicians Medical Group to maintain high-quality healthcare service to the community at Seton and Seton Coastside. “As the State healthcare system faces mounting challenges in the battle against COVID-19, investing in community hospitals, with the continued support of the community, the County of San Mateo, and the hospital’s physicians, nurses and employees, is important now more than ever,” stressed AHMC spokesperson Eric Tuckman.
Verity Health filed chapter 11 bankruptcy in August 2018.
This latest deal comes on the heels of California Governor Gavin Newsom's announcement last month that the state would spend $30 million leasing Seton Medical Center and St. Vincent Medical Center in Los Angeles.
Verity shuttered St. Vincent in January and then reopened it April 13 to treat COVID-19 patients. Within a week the facility was sold to billionaire Dr. Patrick Soon-Shiong for $135 million.
“St. Vincent is Los Angeles’ oldest hospital with a storied history of innovation and caring for the poor. St. Vincent was in the center of the storm and the hospital that cared for Los Angelenos during the smallpox pandemic of 1876-77. The legacy of innovation and caring for the poor must continue,” said Soon-Shiong in a statement, adding that, “through the acquisition of this closed campus, we can ensure an ongoing legacy of preparedness against viral threats such as COVID-19. We are pleased to partner with the State of California using St. Vincent again during this time of crisis to contribute to winning the war by serving as the Los Angeles Surge Hospital.”
Verity is also selling St. Francis Medical Center in Lynwood, California in a $350 million deal approved by the bankruptcy court April 9. The buyer is Prime Healthcare Services.
“Our agreement with Verity reflects our decades-long mission of saving, improving and investing in community hospitals,” Dr. Sunny Bhatia, Prime Healthcare’s Region 1 CEO and corporate chief medical officer, said in an April 9 statement. “We are honored and look forward to continuing St. Francis’ legacy of compassionate, critical medical care for the communities it serves, especially during this unprecedented health crisis.”
Back to HCB News