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STAFF REPORT
SANTA ANA, Calif. – Today, southern California-based KPC Health announced that U.S. Bankruptcy Court Judge Ernest M. Robles approved the Asset Purchase Agreement for KPC’s Strategic Global Management to acquire Verity Holdings, LLC, St. Francis Medical Center in Lynwood, St. Vincent Medical Center in downtown Los Angeles, St. Vincent Dialysis Center, Seton Medical Center in Daly City, and Seton Coastside in Moss Beach.
No other proposed bids exceeded the KPC Group’s original stalking horse bid of $610 million. Therefore, no auction was required for the Verity hospitals. KPC’s bid was approved by Verity Health System’s Board of Directors on April 15, 2019. The court-approved bid will be submitted to the Attorney General for approval.
“Today marks an important milestone for KPC Heath’s bid to acquire four Verity Health hospitals,” said Dr. Kali P. Chaudhuri, Chairman of The KPC Group and KPC Health. “We look forward to working with Verity Health on a successful acquisition and welcoming these important community hospitals into our integrated healthcare system.”
“KPC remains very optimistic about the future of these hospitals, their employees, and the value they bring to delivering quality health care to many California communities, said Peter Baronoff, CEO of KPC Health and Managing Director of The KPC Group.”
KPC Health owns and operates a group of integrated healthcare delivery systems consisting of acute care hospitals, Independent Physician Associations, medical groups, and various fully integrated multi-specialty medical facilities. KPC Health’s current system of hospitals includes seven full-service acute care hospitals located throughout southern California. Additionally, KPC Health is acquiring seven long-term acute care hospitals and two skilled nursing facilities located in Kansas, Utah, Mississippi, Arizona, Louisiana, and Texas, which will bring its integrated healthcare system to 20 facilities nationally combined with the Verity Health acquisition.
