Bankrupt Daly City Hospital Gets Reprieve in Coronavirus Crisis

State will send Seton Medical Center millions of dollars a month to lease beds for treating virus patients

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The state of California has thrown a lifeline to a struggling hospital on the Peninsula. Gov. Gavin Newsom announced Thursday night that the state would be sending Seton Medical Center millions of dollars a month in emergency funds to lease beds during the coronavirus outbreak.

The hospital will receive $5 million for the first month then $2.7 million monthly for both the medical center in Daly City and Seton Coastside, a skilled nursing facility in Moss Beach, according to the San Francisco Examiner.

Those monthly payments will help ensure that Seton, whose owners have declared bankruptcy, doesn’t shut down during this health crisis and will provide the Bay Area with an additional 357 beds that could be used to treat patients who contract COVID-19.

Newsom hopes those hospital beds won’t be necessary if Californians follow his order to stay home.

"If we change our behaviors, that inventory will come down, bend the curve," Newsom said.

The state and San Mateo County have been fighting to keep Seton open since it’s the only hospital in Daly City, a safety net for the community.

Earlier this month, the county Board of Supervisors approved $20 million in emergency funds to buy the hospital time during negotiations for a sale.

A special session of the San Mateo Board of Supervisors met Wednesday to save its only hospital, Seton Medical Center, which is in danger of closing in the next several days.
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