Verity Health System $40 million Seton Medical Center sale approved

By Caroline Salls

Pittsburgh, April 22 – Verity Health System of California, Inc. obtained court approval of the private $40 million sale of Seton Medical Center to AHMC Healthcare Inc., according to docket entry made Wednesday with the U.S. Bankruptcy Court for the Central District of California.

Verity said the sale will preserve the Seton facilities, including the hospital and its Coastside campus, as operating hospitals.

The company said a previously agreed sale did not close, and it received one qualified offer, from AHMC, as part of the subsequent marketing process.

In addition to the purchase price, AHMC will pay an amount equal to the cure costs for the assets being sold, while the Verity debtors will retain some accounts receivable generated before the closing of the sale.

According to the motion, “preservation of the Seton facilities as operating hospitals will be critical to the State of California’s efforts to address the ongoing 2019 coronavirus pandemic and continue to provide other essential health care services to Seton’s communities.”

Verity is a Los Angeles-based nonprofit health care system. The company filed bankruptcy on Aug. 31, 2018 under Chapter 11 case number 18-20151.

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