Verity Health System of California Inc, a nonprofit operator of six California hospitals managed by billionaire former surgeon Patrick Soon-Shiong’s NantWorks LLC, filed for bankruptcy on Friday to help resolve a cash crunch while it seeks a buyer, Reuters reported. The health system’s bankruptcy filing follows a series of deals that left it saddled with more than $1 billion in pension liabilities and bond debt. Verity, which serves low-income communities in Los Angeles and San Jose, secured a $185 million loan to help it stay operational through the bankruptcy. Verity Chief Executive Officer Richard Adcock said he expected the operator to remain in bankruptcy protection from creditors for a couple years as it restructures and works with potential buyers. “We’ve had over 100 parties formally reach out to us,” he said of the sale process, which Verity started in July. He said potential suitors include large national operators, and could include deals for individual facilities.
