Verity Health System Files Files for Protection Under Chapter 11 to Reorganize and Facilitate an Ordery and Efficent Sale Process

  • All hospitals to continue to operate and provide high-quality care to patients throughout this process
  • Verity intends to sell all or some of its assets in Chapter 11 and is actively seeking potential buyers
  • Additional liquidity of up to $185M secured to ensure financial stability throughout the reorganization process

LOS ANGELES, August 31, 2018 – Verity Health System of California, Inc. (“Verity Health,” or “Verity,” or “the System”), a nonprofit healthcare system, today filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California – Los Angeles Division. Verity has secured debtor-in-possession financing of up to $185 million. This additional liquidity will enable continued operations without interruption to high-quality patient care, employees and suppliers throughout the Chapter 11 process.

This filing follows Verity’s previous press release on July 9, which stated that the System has been exploring strategic options to address the issues facing the System. Today’s announcement follows a thorough process of considering a range of alternatives for the System’s hospitals, including the potential sale of some or all of the hospitals and related healthcare businesses.

The entities that are filing today are:

  • De Paul Ventures San Jose Dialysis, LLC
  • De Paul Ventures, LLC
  • O’Connor Hospital
  • O’Connor Hospital Foundation
  • Saint Louise Regional Hospital
  • Saint Louise Regional Hospital Foundation
  • Seton Medical Center Foundation
  • Seton Medical Center, including Seton Medical Center Coastside campus
  • St. Francis Medical Center
  • St. Francis Medical Center Foundation
  • St. Vincent de Paul Ethics Corporation
  • St. Vincent Dialysis Center
  • St. Vincent Medical Center
  • St. Vincent Medical Center Foundation
  • Verity Business Services
  • Verity Holdings, LLC
  • Verity Medical Foundation