Verity gets OK to sell 384-bed bankrupt hospital to Prime Healthcare, despite objections

U.S. Bankruptcy Judge Ernest Robles overthrew the objections, which should allow the $350 million sale to complete. The judge likewise stated he would approve Veritys Chapter 11 liquidation plan..

Alia Paavola –
Thursday, August 13th, 2020
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The personal bankruptcy judge said Prospect did not have standing to oppose the Prime sale, and it didnt submit its bid till after the due date passed, according to the report.
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Verity challenged 3 of the conditions described by the chief law officer, saying they were extremely burdensome. The disputed conditions focused on the amount of charity care and community-benefit services the healthcare facility would need to supply..

In addition, in late July, Los Angeles-based Prospect Medical Holdings made a last-minute attempt to block Prime from buying St. Francis Medical Center..

As a result, the attorney general of the United States opposed authorizing the sale and approving Veritys Chapter 11 liquidation strategy, according to the Journal..

In spite of objections for California attorney general of the United States and a last-minute effort from an opposing bidder to obstruct the sale, El Segundo, Calif.-based Verity Health System won insolvency court approval to offer a 384-bed healthcare facility in Lynwood, Calif., to Prime Healthcare Services, according to The Wall Street Journal..

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Prospect Medical, backed by a personal equity company, supposedly used to pay $50 million more than Prime and offered to accept all of the attorney general of the United Statess conditions..

California Attorney General Xavier Becerra conditionally authorized the sale to Prime in July. Mr. Becerra set 21 conditions for the sale of St. Francis Medical Center to Prime Healthcare, a for-profit provider based in Ontario, Calif..

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