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. Hospital news comes out of Texas, D.C. and Illinois, as well.
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)
Sacramento Bee:
Why Dignity Nurses Are Challenging Merger With Catholic Health Care Giant
The California Department of Justice will take comment Thursday in Woodland on whether it should approve the pending merger of San Francisco-based Dignity Health with health-care giant Catholic Health Initiatives, and this meeting, like others before it, is expected to draw a sea of red-shirted Dignity nurses opposing the deal. (Anderson, 9/1)
ProPublica:
Prominent Houston Judge Quits St. Luke’s Board After Heart Transplant Troubles Revealed
Carolyn Dineen King, a senior U.S. Circuit Court judge, confirmed that she stepped down from the St. Luke’s board on May 30, two weeks after the investigation was published. King joined the board in January 2014 and chaired the committee that oversees quality and patient safety at the hospital. (Hixenbaugh and Ornstein, 9/4)
The Washington Post:
Board Of Providence Hospital Overhauled Amid Plans To End Acute Services
The management of the District’s Providence Hospital has overhauled its board of directors amid controversy over plans to end acute-care services at the facility by the end of the year. A spokesman for Ascension, which owns the hospital and is the world’s largest Catholic-run health-care system, on Friday confirmed a shake-up of the board of directors first reported by the Washington City Paper. (Nirappil, 8/31)
Chicago Tribune:
Little Company Of Mary Hospital To Stop Pediatric Inpatient Services
Little Company of Mary Hospital in Evergreen Park plans to close its pediatric inpatient unit, joining an ever-growing list of Chicago-area hospitals doing the same. The hospital has filed an application with the state Health Care Facilities and Review Board to discontinue its 20-bed pediatric unit by Nov. 1. The hospital cited declining demand for the services in its application, saying pediatric patients spent 680 days in the unit last year, compared with 722 days the year before. (Schencker, 8/31)
