Struggling California Hospital Chain That LA Billionaire Tried To Save Files For Chapter 11 Bankruptcy
Patrick Soon-Shiong had vowed to turn the Verity Health hospital system around, but over the past year, it continued to struggle.
Reuters:
California Hospital Chain With Ties To Billionaire Files For Bankruptcy
Verity Health System of California Inc, a non-profit operator of six California hospitals managed by billionaire former surgeon Patrick Soon-Shiong's NantWorks LLC, filed for bankruptcy on Friday to help resolve a cash crunch while it seeks a buyer. (8/31)
Politico:
Los Angeles Billionaire's Hospital System Declares Bankruptcy
The filing was meant to "facilitate a court-supervised sale of some or all of the hospitals" while addressing debts and claims that have built up over two decades, CEO Rich Adcock said in a letter. Verity is struggling under long-term debt of $500 million, according to recent financial disclosures. Soon-Shiong took over management of the system in July 2017, promising to provide "the highest level of care with the best outcomes at lowest cost for all Californians." (Tahir, 8/31)
San Jose Mercury News:
Owner Of Four Struggling Bay Area Hospitals Seeks Bankruptcy Protection
“After a diligent process of assessing all possible options alongside our financial and legal advisors, Verity Health has made the best strategic decision for all of our patients, employees and other stakeholders,” Verity CEO Rich Adcock said in a statement posted online Friday. “Despite many efforts over the last decade to create opportunities for success,” Adcock continued, “we can no longer swim against the tide of our operating reality.” He blamed “a legacy burden” of more than a billion dollars of bond debt and unfunded pension liabilities, a need for significant expensive seismic upgrades and an aging infrastructure.(Woolfolk, 8/31)
Los Angeles Times:
Verity Health Files For Bankruptcy Protection. Its Six California Hospitals Will Stay Open
The hospitals were originally owned and operated by Daughters of Charity of St. Vincent de Paul. The system had struggled financially for years and was approaching bankruptcy when it began looking for a buyer in 2014. Integrity Healthcare, a company created by New York hedge fund BlueMountain Capital Management, took over the hospitals in July 2015. (Petersen, 8/31)