Hospital operator Verity Health System of California Inc. won bankruptcy-court approval to sell a Los Angeles-area facility to Prime Healthcare Services Inc. for more than $350 million despite objections from the state attorney general and an opposing bidder, the Wall Street Journal reported. California Attorney General Xavier Becerra, a Democrat, had set 21 conditions for the sale of St. Francis Medical Center in Lynwood, Calif., to Prime, three of which Verity challenged as overly burdensome. The attorney general opposed authorizing the sale of St. Francis to Prime and objected to Verity’s chapter 11 liquidation plan. However, Judge Ernest Robles of the U.S. Bankruptcy Court in Los Angeles overruled the objections yesterday, paving the way for St. Francis to be sold free and clear of the regulatory obligations asserted by the attorney general. The judge also said he would confirm Verity’s liquidation plan. The company filed for bankruptcy protection in 2018.
