Months of uncertainty have been ended up finally and Kamala Harris, the Attorney General of California gave her approval (with conditions) for a non-profit organization being involved in hedge funds. This is going to the largest and the first transaction in the history of the state.
The conditions would be similar to the proposal of Primary Healthcare Services in the year 2014 for purchasing a hospital chain for an amount of $843 million.
One condition on which Harris has given the approval is that Californians have low-incomes would still get access to various health care services such as surgeries, traumatic, emergencies and reproductive services. Another one includes that for 10 years, the same levels or the same type non-emergency and emergency services should be provided to Medi-Californians and that their care contracts must be maintained at every facility.
$150 million loan would also be given by BlueMountain and as part of an agreement, investment of $180 million would be made in improving hospitals. For instance, essential and charitable care must be provided by the hospitals. Harris said in a prepared statement:
“This approval includes strong conditions that will maintain the charitable purpose of the Daughters of Charity Health System, ensuring that low-income Californians will continue to have access to critical health care services, including emergency, trauma, surgical, and reproductive health services.”
All 7000 jobs would be continuing and salaries, job duties and wages would be comparable as per the deal. This deal with BlueMountain was fixed in Summer and $100 million would be paid for right to purchase Daughters of Charity. The involvement of Harris is seen because the approval of all transactions should be done from her office.
Under this agreement, the name of the health system would change to the Verity Health System of California and its status would change to nonprofit public benefit corporation. Between 3 to 15 years, it can be shifted from management to ownership. Seton Coastside would continue operating as a skilled nursing facility with 116 beds and 24 hour emergency.
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