Santa Clara County Interested In Buying 2 Safety Net Hospitals After New Owners Hit Roadbumps
The hospitals were among six sold about three years ago by the Catholic Daughters of Charity to a hedge fund. The deal was blessed by then state Attorney General Kamala Harris under conditions that included facility improvements and no cuts to charity care, jobs or pay. But the nonprofit running all the hospitals recorded operating losses of $55.8 million in the nine months that ended March 31.
The Mercury News:
Fate Of Bay Area Hospitals In Doubt As Hedge Fund Deal To Save Them Sours
Santa Clara County is hoping to buy a pair of struggling hospitals that have long served as a safety net for the poor, less than three years after they were sold to a New York hedge fund in a state-approved deal to ensure they remained open. County Executive Jeff Smith said the county sees a renewed opportunity to acquire O’Connor Hospital in San Jose and St. Louise Regional Hospital in Gilroy as public hospitals to extend its reach and help relieve overcrowding at the county-run Santa Clara Valley Medical Center in San Jose. (Woolfolk, 7/23)