Daly City's Seton Medical Center Among Hospitals to Be Sold to Pay Off Struggling Non-Profit's Debt - NBC Bay Area
Peninsula

Peninsula

The latest news from around the Peninsula

Daly City's Seton Medical Center Among Hospitals to Be Sold to Pay Off Struggling Non-Profit's Debt

    processing...

    NEWSLETTERS

    The Daughters of Charity is looking to pay off debt by selling its hospitals, including Seton Medical Center in Daly City. Pete Suratos reports. (Published Friday, Oct. 16, 2015)

    A public hearing was held Friday over the proposed sale of Seton Medical Center.

    The hospital is one of six medical centers in California owned by Daughters of Charity. The struggling non-profit is currently $150 million in debt and is looking to pay part of it off by selling off some of its hospitals.

    "It's a financially insecure organizations," Daughters of Charity spokesperson Rick Rice said of Seton. "We have lost physicians, valuable physicians."

    Daughters of Charity claim a deal with Prime Health Care would have paid off its debt. But the health care company pull out after Attorney General Kamala Harris required that the hospitals stay in full service for 10 years.

    Fate of 2 South Bay Hospitals to Be Decided

    [BAY] Fate of 2 South Bay Hospitals to Be Decided
    The future of two prominent South Bay hospitals could soon be decided as the California attorney general holds the first public hearings on the possible sale of a hospital chain this week. Robert Handa reports.
    (Published Monday, Oct. 12, 2015)

    "By walking away, Prime is confirming many of the concerns heard at multiple community meetings that the continuity of vital health care services in these communities is not its priority," Harris previously said in a statement regarding Prime Health Care's decision.

    Now Blue Mountain, an East Coast hedge fund, has a $250 million offer to keep the hospitals running with an option to turn them from a non-profit to profit in three years.

    Both Blue Mountain and Daughters of Charity will have to wait and see what conditions the attorney general will require for the final sale.

    "We needed the transaction then and we need the transaction now," Rice said.

    Harris is expected to release her new conditions for the sale in November.

    Get the latest from NBC Bay Area anywhere, anytime
    • Download the App

      Available for IOS and Android