Beverly Hospital near Los Angeles tried and failed for years to sell itself. It turned the corner when it filed for bankruptcy, WSJ Pro Bankruptcy reported. The chapter 11 filing in April gave the hospital operator some leverage against the state’s attorney general, who has the authority to mandate prospective buyers to maintain costly services such as emergency and charity care, and to accept patients covered by government-backed healthcare programs. Such requirements had stunted Beverly’s earlier sale attempts. As its finances worsened, the hospital faced the rising possibility of shutting down, leaving tens of thousands of low-income patients in the city of Montebello without healthcare services. About two months after Beverly filed for bankruptcy, North Carolina-based American Healthcare Systems Foundation agreed to buy the nonprofit hospital for $100 million, keeping the 202-bed facility open. And unlike previous would-be buyers, AHS was able to swiftly negotiate terms of conditions with the attorney general. Read more.
The financially troubled healthcare sector will be the focus of the ABI Healthcare Program, September 18-19, 2023, in Nashville, Tenn. For more information and to register, click here.
