Tuesday, December 15, 2015

Seton Medical Center under new management: Verity Health system

The Daily Journal/Bill Silverfarb, 12/15/15.  "Hedge fund approves Seton deal: Daughters of Charity set to become Verity Health System."

Image result for Seton Hospital, Daly City, CA pictures
Seton Medical Center continues
Image result for Seton Hospital, Daly City, CA pictures
Seton Coastside Medical Center
"A hedge fund has approved the conditions California Attorney General Kamala Harris set forth for the acquisition of six hospitals controlled by Daughters of Charity including Seton Medical Center in Daly City. The hospitals will now be controlled by BlueMountain Capital and be rebranded Verity Health System.  The deal also includes Seton Coastside in Moss Beach, two other hospitals in Santa Clara County and two others in Southern California.

....  The Service Employees International Union-United Healthcare Workers West approves of the transaction.  Seton is Daly City’s largest employer.“The deal ends months and years of potential uncertainty,” Daly City Councilman David Canepa said Monday. “It avoids the ultimate disaster by ensuring residents in north county have access to quality health care and by sparing hundreds of jobs.”

....  For at least the first three years of the agreement Harris proposed, the health system will continue to operate as a nonprofit public benefit corporation. After three years and before the expiration of the 15-year agreement, BlueMountain can exercise its option to purchase the health system. Conditions new management must meet include that Seton Medical Center must operate as an acute care hospital and offer emergency services for at least 10 years."   Read article. 

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Nice view, where's the ER?
Related articles. Modern Health Care/Melanie Evans, 12/14/15. "Daughters of Charity finally closes on a deal."  "BlueMountain, which will manage the hospitals through its subsidiary Integrity Healthcare, pledged up to $260 million to the failing system as part of the deal. 'This large infusion of capital will provide a great jump-start on the many strategic, operational and capital initiatives desperately needed in our hospitals,' said Robert Issai, former president and CEO of the Daughters of Charity. .... 'Verity will proudly continue the mission of care begun by the Daughters of Charity more than 150 years ago,' Mitchell Creem, CEO of Verity Health System, said in a statement. 'I am extremely pleased and grateful for the opportunity to carry on this tradition of excellence, with new leadership and significant investments.'"

San Jose Mercury News/Lifestyles/Tracy Seipel, 12/15/15, "Daughters of Charity Health System closes deal with hedge fund." .... "The news came 11 days after California Attorney General Kamala Harris gave her conditional approval for the largest nonprofit hospital transaction in state history, and the first to involve a hedge fund.  .... In a prepared statement, Daughters of Charity CEO Robert Issai thanked Harris for approving the deal and said the large infusion of capital will preserve the system's mission of care, and protect labor agreements and pensions for current and former employees. ....  Under the new management company called Integrity Healthcare, the $21 billion hedge fund will end the hospitals' Catholic affiliation but continue to operate the system as a nonprofit for up to 15 years."

Reference.  Seton Medical Center, Daly City current greeting, "Welcome to Verity Health System".   Note photograph of St. Elizabeth Ann Seton statue and Seton Medical Center by Michael Macor from San Francisco Chronicle/SF Gate, 12/14/15.  Seton Coastside Medical Center (Moss Beach) file from Half Moon Bay Review.  Ambulance near Palmetto Avenue from ABC 7News, 2/8/15

Posted by Kathy Meeh


Anonymous said...

Nice. I am glad the Catholics lost their hospitals, too humble and pro-life. So stoked Hedge Fund Managers are in charge now. Off with their heads. Don't be a drain on society. Good move Democrats.

Anonymous said...

808 No one is as glad as the Catholics.