Verity Health System announces exploration of strategic options
Verity Health System, a nonprofit healthcare system, announced it is exploring strategic options to alleviate financial and operational pressures on its six hospitals. At this time, a range of options are being considered, including the potential sale of some or all of its locations, among other possible transactions.
“The top priority of Verity’s board and management team is to establish a long-term, sustainable path forward for our hospitals, which are of critical importance to the communities they serve,” said Rich Adcock, CEO of Verity Health. “Pursuant to Verity’s strategic plan, we are exploring a number of options to deleverage our balance sheet and address challenges our hospitals face after a decade of deferred maintenance, poor payor contracts, and increasing costs. As the board and management team work together to evaluate these options, the interests of our patients, employees and communities remain paramount.”
Verity Health’s Board has not made any final decisions related to specific strategic options at this time. The organization will share additional information about the review process once it is complete and further disclosure is appropriate.
Cain Brothers is acting as financial advisor to the Company. Dentons is acting as legal advisor.
Verity Health System
Verity Health System is a nonprofit healthcare system. Its hospitals include 1,650 inpatient beds, six active emergency rooms, a trauma center and a host of medical specialties including tertiary and quaternary care. Verity’s two Southern California hospitals are St. Francis Medical Center in Lynwood and St. Vincent Medical Center in Los Angeles. In Northern California, O’Connor Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City and Seton Coastside in Moss Beach are part of Verity Health.
Verity Health also includes Verity Physician Network and Verity Medical Foundation, encompassing hundreds of physicians across a variety of practice models, independent practice associations, ambulatory surgery centers and urgent care centers.
Since its creation in December 2015, Verity Health System has worked to revitalize its hospitals in Northern and Southern California and ensure financial sustainability in order to care for patients for generations to come – including the underserved.
This press release was provided by Verity Health System.