Verity Health System says it has completed the sale of St. Vincent Medical Center in Los Angeles to Dr. Patrick Soon-Shiong following U.S. Bankruptcy Court approval.
Under the agreement, Dr. Patrick Soon-Shiong will acquire all assets related to St. Vincent for $135 million. Additionally, Dr. Patrick Soon-Shiong will assume the lease between Verity Health and the State of California, which allows the state to utilize the main campus to provide services related to the COVID-19 pandemic.
Dr. Patrick Soon-Shiong will also use the other buildings on the St. Vincent campus to conduct critical COVID-19 research. The sale was approved by the Court under Section 363 of the U.S. Bankruptcy Code.
“Verity Health is proud of its partnership with the State of California and is confident that Dr. Soon-Shiong and his team will continue to enhance the collaboration with the State and local government to address COVID-19,” Verity Health CEO Rich Adcock said in a statement.
The medical center closed earlier this year after Verity declared bankruptcy, the Los Angeles Times reports. Billionaire Dr. Soon-Shiong (who also owns The Times), global health firm NantWorks is a creditor in Verity’s bankruptcy proceedings.
“St. Vincent is Los Angeles’ oldest hospital with a storied history of innovation and caring for the poor. St. Vincent was in the center of the storm and the hospital that cared for Los Angelenos during the smallpox pandemic of 1876-77. The legacy of innovation and caring for the poor must continue,” said Dr. Patrick Soon-Shiong. “Through the acquisition of this closed campus, we can ensure an ongoing legacy of preparedness against viral threats such as COVID-19. We are pleased to partner with the State of California using St. Vincent again during this time of crisis to contribute to winning the war by serving as the Los Angeles Surge Hospital.”
