Health-care company Strategic Global Management Inc. said it would pay $50 million in cash for two bankrupt Bay Area hospitals owned by Verity Health System of California Inc. but is being blocked by the owner from bidding on the properties, WSJ Pro Bankruptcy reported. SGM, a California-based for-profit health-care company owned by orthopedic surgeon and real-estate investor Dr. Kali Pradip Chaudhuri, said an affiliate has made a written offer to Verity for the 357-bed Seton Medical Center in Daly City, Calif., south of San Francisco.The $50 million offer doesn’t include accounts receivable or additional revenue, which SGM estimates at another $30 million. But SGM said that the efforts to participate in the process have been “blocked” by Verity, according to papers filed on Monday in U.S. Bankruptcy Court in Los Angeles. A Verity representative couldn’t immediately be reached for comment. The $50 million bid also includes the 116-bed Seton Coastside, in Moss Beach, Calif. SGM’s renewed interest in Seton Medical comes as California prepares to take dramatic steps to slow the spread of the novel coronavirus. Some 6.7 million people in the Bay Area have been ordered to stay at home for three weeks except for essential needs, authorities said Monday. The legal order includes San Mateo County, where the Seton medical facilities are located.
