California attorney general Rob Bonta filed a lawsuit against AHMC Healthcare on Oct. 2, claiming the Alhambra-based health system's service reductions at one Bay Area hospital and closure of another facility violate conditions set by the state when it acquired the facilities in 2020.
The lawsuit alleges that the closure of Seton Medical Center Coastside in Moss Beach and failure to maintain stroke center certification at Seton Medical Center in Daly City breach the terms of the purchase agreement.
"The conditions that were set forth with AHMC were specifically implemented to protect patients, ensure continued access to critical healthcare services and safeguard the community's health and well-being," Mr. Bonta said in a statement. "Unfortunately, AHMC clearly has not upheld its obligations. This failure to meet the required standards is completely unacceptable."
In April, Seton Medical Center Coastside was closed for structural repairs that hospital officials said could take up to nine months. The 116-bed skilled nursing facility, which includes a five-bed acute care facility and emergency department, sustained damage from storms in 2023. Hospital leaders said major repairs were necessary and that they planned to reopen the facility once all repairs were complete.
As part of the sale agreement, AHMC agreed to keep the facility open until December 2025.
In a statement to Becker's, the health system said it was "surprised" by the lawsuit, calling the attorney general's claims "misleading" and emphasizing its intention to reopen the facility once structural repairs are complete. It also said the temporary closure was required by regulators and that the state's health department approved the closure.
"The AG is under the false impression that Seton Coastside could open its doors once the roof replacement was completed earlier this fall," AHMC said. "Not so. Even after the roof was replaced, the building was still unsafe for human occupancy, and there was no safe option to occupy the building when the other emergency repairs were still required. We believe the claims made by the AG's office that Seton was merely engaged in cosmetic upgrades and deferred maintenance are false and misleading.
"We have been diligently addressing these matters and undertaking the repairs necessary to reopen the Seton Coastside Emergency Department and SNF and to otherwise comply with the AG's conditions. We have also been cooperating with the AG office's investigation into these issues as they relate to the AG's 2020 conditional approval of the sale of this distressed hospital, which was facing closure if AHMC had not purchased it."
In taking legal action, the attorney general is seeking to resume operations at Seton Coastside and restore primary stroke services at Seton Medical Center. The move marks Mr. Bonta's second lawsuit against a hospital this week.
On Sept. 30, his office filed suit against Providence St. Joseph Hospital in Eureka for refusing to provide an emergency abortion to a woman experiencing an obstetric emergency. In doing so, Providence violated multiple state laws, the lawsuit claims.