Bankrupt hospital chain receives $610M bid


https://www.beckershospitalreview.com/hospital-transactions-and-valuation/bankrupt-hospital-chain-receives-610m-bid.html?origin=cfoe&utm_source=cfoe

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El Segundo, Calif.-based Verity Health received a $610 million offer for four of its hospitals in California.

Four things to know:

1. Verity Health, which operated six hospitals in California when it entered Chapter 11 bankruptcy in August, is selling its assets through the bankruptcy process.

2. Corona, Calif.-based KPC Group bid $610 million to purchase the following four Verity hospitals: St. Francis Medical Center in Lynwood, St. Vincent Medical Center in Los Angeles, Seton Medical Center in Daly City, and Seton Coastside in Moss Beach.

3. KPC Group’s offer is a stalking horse bid, meaning Verity will evaluate competing bids to ensure it receives the highest offer for its assets.

4. Verity’s hospitals in San Jose and Gilroy are not included in KPC Group’s bid. Santa Clara County previously placed a bid for those two hospitals. The bankruptcy court approved the sale, but California Attorney General Xavier Becerra appealed the bankruptcy court’s approval.

 

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