South San Francisco, CA August 31, 2018 by San Mateo County Supervisor David Canepa
Announcement by Verity that it will file for bankruptcy jeopardizes health of underserved in north San Mateo County, across California
REDWOOD CITY – San Mateo County Supervisor David J. Canepa issued the following statement today after Verity Health announced it is filing for bankruptcy. Verity owns six hospitals formerly controlled by the Daughters of Charity including Seton Medical Center in Daly City. Verity is operated by Integrity Healthcare, which is primarily controlled by Los Angeles Times and Lakers owner Dr. Patrick Soon Shiong.
“This is a broken promise that jeopardizes the health of the poor and elderly in San Mateo County,” Canepa said. “It’s unconscionable that Dr. Soon Shiong propped himself up as a savior to Seton and these other hospitals. It has become crystal clear by the bankruptcy announcement that he virtually had no intention of keeping these hospitals open and to continue to serve the poor like the Daughters of Charity did. The whole thing seems like one big lie.”
Attorney General Kamala Harris approved the sale of the Daughters of Charity hospitals in December 2015 to a hedge fund called BlueMountain Capital Management. BlueMountain rebranded the system Verity and created Integrity to manage the system. The conditions of approval included that Seton must continue to operate as an acute care hospital and offer emergency services for 10 years. Read the conditions of approval here.
A recent Politico article revealed that Dr. Soon Shiong directed millions, between $20 million to $100 million, from Verity to an IT vendor named Allscripts, a company Dr. Soon Shiong also partially owns. Read the Politico article here.