Verity Health System Completes Sale of Six Hospitals as Part of Bankruptcy Process
REDWOOD CITY, CALIF. — Verity Health System has completed the sale of its six-property hospital portfolio as part of the company’s Chapter 11 bankruptcy procedures.
The Redwood City-based nonprofit healthcare company filed for bankruptcy protection in summer 2018 and subsequently worked to sell off its portfolio of assets, which included six medical centers offering 1,650 inpatient beds, six active emergency rooms, a trauma center and a host of spaces centered on medical specialties including tertiary and quaternary care.
Most recently, Verity Health completed the sale of St. Francis Medical Center, a 384-bed hospital in the Los Angeles County suburb of Lynwood, for $350 million to Prime Healthcare. The provider also sold Seton Medical Center, a 357-bed hospital located in the San Francisco suburb of Daly City, and Seton Coastside, a 116-bed hospital located in Moss Beach, Calif., for $40 million to AHMC Healthcare.
The agreement to sell St. Francis Medical Center was announced in April of this year. Also in April, Verity agreed to sell St. Vincent Medical Center, a 381-bed hospital located in Los Angeles, for $135 million to surgeon and medical researcher Dr. Patrick Soon-Shiong.
Santa Clara County was the buyer in Verity’s first two asset sales — O’Connor Hospital and St. Louise Regional Hospital — in March 2019.
Cain Brothers, a division of KeyBanc Capital Markets, served as the exclusive sell-side financial advisor to Verity Health System in each transaction.
Prime Healthcare and the nonprofit Prime Healthcare Foundation employ nearly 40,000 people and own and operate 45 acute care hospitals in Alabama, California, Florida, Georgia, Indiana, Kansas, Michigan, Missouri, Nevada, New Jersey, Ohio, Pennsylvania, Rhode Island and Texas. The private healthcare firm was founded in 2001 and is based in Ontario, Calif.
AHMC Healthcare Inc. is a for-profit, privately held hospital corporation based in the Greater San Gabriel Valley of California. The system employs over 2,500 physicians and 5,000 employees.
— Katie Sloan