Bankrupt Verity Health System will sell its 384-bed hospital in Lynnwood, Calif., to for-profit hospital operator Prime Healthcare Services.
El Segundo, Calif.-based Verity will sell St. Francis Medical Center to Ontario, Calif.-based Prime Healthcare Services for a net consideration of $350 million.
The $350 million total includes a $200 million base price as well as $15 million in payroll and benefits for staff. Prime Healthcare Services has also vowed to inject $47 million in funding to the hospital for technology, infrastructure, equipment and system upgrades.
"Our agreement with Verity reflects our decades-long mission of saving, improving and investing in community hospitals," said Sunny Bhatia, MD, Prime Healthcare's Region 1 CEO and Corporate CMO. "We are honored and look forward to continuing St. Francis' legacy of compassionate, critical medical care for the communities it serves, especially during this unprecedented health crisis."
Verity Health has been trying to sell St. Francis Medical Center since it filed for Chapter 11 bankruptcy in 2018.
A bankruptcy court Judge Ernest Robles said April 9 he would approve the sale, according to The Wall Street Journal.
Separately, Verity Health is also working to sell the shuttered St. Vincent Medical Center in Los Angeles. It received a $135 million bid from Patrick Soon-Shiong, MD, the billionaire owner of the Los Angeles Times and inventor of cancer drug, Abraxane. Dr. Soon-Shiong is working to reopen the shuttered Los Angeles hospital as a COVID-19 care and research center.