Menifee Global Medical Center honored as Business Spotlight

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Menifee Global Medical Center honored as Business Spotlight

MENIFEE – The Menifee Global Medical Center was honored during the Oct. 2 city council meeting by Menifee’s Economic Development Department as the Business Spotlight for October. The community hospital, part of the KPC Health hospital system, has invested more than $2.5 million into its Menifee location in recent years.

“Menifee Global Medical Center is truly your hospital in the community,” Peter Baronoff, CEO of KPC Healthy System CEO, said.

He also announced that KPC Health is looking to add a medical school in Southern California in the future and has identified Menifee as one of three finalists for a potential location for the school.

“Medical schools bring a variety of important needs to a community,” Baranoff said. “The economic benefit is amazingly substantial.”

He also highlighted the community health benefits of potentially bringing highly trained medical professionals to the city.

“Menifee Global Medical Center/KPC Health is truly a valued city partner,” Gina Gonzalez, director of economic development, said. “Through continued job creation, economic investment in Menifee and the consistent delivery of quality health care, the hospital has remained consistent in its dedication to helping Menifee and its residents thrive.”

The Menifee’s Business Spotlight program is a free business recognition program designed to create awareness about the variety of local businesses and their contributions to the Menifee community and region. Featured businesses are recognized at a city council meeting and highlighted on www.MenifeeBusiness.com. Additionally, businesses are awarded a 30-second professional video production created by the Department of Economic Development that will be showcased on the city’s website, social media platforms and given to the business with rights to use as needed to promote their business.

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Menifee hospital to be renamed, expand its services

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Menifee hospital to be renamed, expand its services

The ownership group of Menifee Valley Medical Center was honored in a “Business Spotlight” at the Menifee City Council meeting on Wednesday, with the CEO announcing big plans for expansion of the facility’s health care services.

Peter Baronoff, CEO and Managing Director of KPC Health Global Medical Centers, told council members and guests that the facility on McCall Boulevard — led by a new executive staff and to be rebranded as Menifee Global Medical Center — “will be a resource for the whole community.”

In doing that, Baronoff said his company will open a 7,000-square-foot annex in the Haun Medical Office building, providing expanded services to residents with a group of neurosurgeons, orthopedic surgeons and other medical professionals. A Grand Opening of that facility is being planned, and free flu shots will be given next door at City Hall.

Then on Dec, 6, the medical center on McCall Boulevard will officially be renamed in a program that will include a health fair and health screenings for guests.

KPC Global already is providing quality health care and education of professionals at the Hemet Valley Medical Center, which is part of the company’s Physicians for Healthy Hospitals coalition. Baronoff plans to expand the company’s services as teaching hospitals, however, and he announced Wednesday plans to establish a medical school in Southern California.

He also announced that Menifee is one of three cities he is looking at for the facility. If it is built here, Baronoff said, the facility would have a “significant economic impact” on the community, employing about 400 people.

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KPC Health Founder, Chairman Receives ‘Above and Beyond’ Award From Crime Survivors

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KPC Health Founder, Chairman Receives ‘Above and Beyond’ Award From Crime Survivors

CORONA, Calif., Aug. 15, 2019 (GLOBE NEWSWIRE) — Dr. Kali P. Chaudhuri, Founder and Chairman of the KPC Group and KPC Health, was recently presented with the “Above and Beyond” award from the Southern California based non-profit, Crime Survivors.  Crime Survivors’ mission is to provide hope and healing to victims and survivors of crime through advocacy and the support of resources, information, and empowerment from the critical time after a crime occurs, through the challenges and successes of surviving and thriving. 

In April of 2018, Dr. Chaudhuri and KPC Health generously provided space to establish the first Crime Survivors Resource Center in Southern California.  The resource center is located adjacent to Orange County Global Medical Center and Regional Trauma Center in the KPC Health corporate office building and is a place where survivors of crime can find the support and resources they need.  The award was given to Dr. Chaudhuri in recognition of this contribution. 

The award was presented at Crime Survivors’ annual Hope Gratitude Gala on Friday, August 2nd, which was co-chaired by Orange County District Attorney Todd Spitzer and Orange County Sheriff Don Barnes, and featured veteran and international hero, Spencer Stone, as the keynote speaker.

“We are extremely grateful to Dr. Chaudhuri and KPC Health for their generous support for the Crime Survivors organization,” said Patricia Wenskunas, Founder and CEO of Crime Survivors.  “Having a brick and mortar Southern California Resource Center better enables us to provide critical support services to survivors of crime and is a major milestone for our organization.”

“KPC Health is proud to support such an incredible organization that provides a voice for the voiceless and does so much good work for our community,” said Dr. Kali P. Chaudhuri, Founder and Chairman of the KPC Group and KPC Health.  “Patricia Wenskunas is a selfless person that is committed to an important cause, and we look forward to supporting her and Crime Survivors in their future endeavors.”

“Dr. Chaudhuri understands that providing quality healthcare is about more than simply treating a patient when they are sick or injured,” said Peter Baronoff, CEO of KPC Health.  “It also requires a commitment to, and investment in, the communities we serve.  Dr. Chaudhuri’s work with Crime Survivors is a perfect demonstration of his passion for helping others, especially the truly vulnerable in our society.”

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KPC Group Announces Dr. John Heydt as Chief Clinical Officer of KPC Health and Chief Executive Officer of Apex Medical Group

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KPC Group Announces Dr. John Heydt as Chief Clinical Officer of KPC Health and Chief Executive Officer of Apex Medical Group

CORONA, Calif., Aug. 06, 2019 (GLOBE NEWSWIRE) — Today KPC announced the appointment of Dr. John A. Heydt as Chief Clinical Officer (CCO) of KPC Health and Chief Executive Officer (CEO) of Apex Medical Group, a subsidiary of the KPC Group.  Dr. Heydt is a nationally renowned physician executive and has significant experience in the Southern California healthcare market.

Most recently, Dr. Heydt served as Chief Academic Officer of Borrego Health, where he established an affiliation between Hemet Valley Medical Center and Borrego.  Prior to that, Dr. Heydt served as Senior Associate Dean of Clinical Affairs for UC Irvine School of Medicine and UC Riverside School of Medicine. He also served as CEO of the UC Riverside Health Medical Group.

Dr. Heydt has held a number of executive leadership roles, including CEO of Drexel University Physicians, Chief Quality Officer and Chair of Family, Preventive, and Community Medicine at Drexel University College of Medicine, Director of Urgent Care at UCLA Medical Center, and Chief Medical Officer at the Medical College of Pennsylvania Hospital. Dr. Heydt attended medical school at Temple University School of Medicine and completed his residency in Family Medicine at UCLA Medical Center.  He is board certified in both Family Medicine and Sports Medicine.

“Dr. Heydt has an esteemed record and we are honored he has decided to join our team,” added Dr. Kali P. Chaudhuri, Founder and Chairman of the KPC Group and KPC Health.  “His clinical and academic leadership experiences will enhance our rapidly growing health system to ensure we deliver the most advanced healthcare to the communities we serve.”

“As a physician executive, Dr. Heydt has just the kind of leadership skills and clinical expertise necessary to ensure our clinical operations meet the highest standards for our patients,” said Peter Baronoff, CEO of KPC Health.  “He will be great asset to the KPC Health System and Apex Medical Group as we broaden access to specialty services.”

“I am thrilled to join the KPC Health system and look forward to contributing to a growing healthcare system,” said Dr. John A. Heydt, CCO of KPC Health and CEO of Apex Medical Group.  “I am especially excited about the opportunity to work with some of the top physicians in Southern California.”  

KPC Health owns and operates a group of integrated healthcare delivery systems consisting of acute care hospitals, Independent Physician Associations, medical groups, and various fully integrated multi-specialty medical facilities.  KPC Health’s current system of hospitals includes seven full-service acute care hospitals located throughout southern California. In addition, KPC Health recently received court approval to acquire four California hospitals, and seven long-term acute care hospitals and two skilled nursing facilities located in Kansas, Utah, Mississippi, Arizona, Louisiana, and Texas.  Once finalized, these acquisitions will bring KPC Health’s integrated healthcare system to 20 facilities nationally.

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KPC’s Chaudhuri Aims For Kaiser-Like Integration

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KPC’s Chaudhuri Aims For Kaiser-Like Integration

KPC Group founder Kali Chaudhuri is attempting to do what a private capital firm, a nonprofit charity, and Los Angeles’ wealthiest person couldn’t—turn around a struggling regional hospital system. 

The Business Journal reported last month that Chaudhuri’s KPC planned to pay $610 million to acquire assets of bankrupt Verity Holdings LLC, a Redwood City-based firm that owned four hospitals—including Lynwood’s St. Francis Medical Center, a 384-bed trauma center in L.A. County—and a nursing facility. 

Chaudhuri’s plan to revitalize those facilities may be to give the unionized workers a chance to own part of the hospital, something he’s done with other hospitals he turned around in Orange County. 

“I came to America with $8 in my pocket,” Chaudhuri told the Business Journal. “The reason I work hard in America is because I own my own business, and our employees will work hard because they are owners.” 

The ownership plan for Verity won’t immediately be available, as KPC will initially focus on restructuring. 

“I’d like the program to be everywhere, but we need to make sure we properly size things up and integrate; it cannot be done right away,” he said. 

Wasted Water 

Chaudhuri, a native of India, started his career as an orthopedist in the Riverside County town of Hemet, 75 miles east of Irvine. 

He has since built Riverside-based KPC Group into a firm with $10 billion in assets in disparate industries like real estate, pharmaceuticals and engineering. 

A subsidiary, KPC Healthcare Inc., is making the Verity purchase and is based in Santa Ana. 

KPC Healthcare currently includes seven full-service acute care hospitals throughout Southern California. Its four hospitals based in Orange County are Orange County Global Medical Center, South Coast Global Medical Center, Anaheim Global Medical Center and Chapman Global Medical Center, which generated revenue of $382 million in 2018 combined. 

It also operates independent physician associations and various medical facilities such as skilled nursing, behavioral health and ambulatory care sites. 

In addition to buying four OC hospitals via bankruptcy sales, Chaudhuri has also purchased Hemet Valley Medical Center, Menifee Valley Medical Center and Victor Valley Community Hospital in Victorville, now known as Victor Valley Global Medical Center. 

He compares healthcare inefficiency to water being wasted during a rainstorm. 

“The water coming from the sky should all fall in one bucket so we can use it, redistribute it and save it,” he said. “Unfortunately, a lot of water is wasted and that is the problem we are figuring out.” 

About 30 hospitals close annually, according to the American Hospital Association. 

Kaiser Model 

Chaudhuri likens his healthcare company’s integration plans to that of Kaiser Permanente, which has its own hospitals, HMO health plan and physician employees. 

He foresees KPC Healthcare including medical and nursing colleges, a pharmaceutical company, in addition to hospitals and nursing homes. 

Integration “allows us to look at the whole dollar,” he said. 

Along with the Verity assets, KPC also recently announced plans to acquire seven of Promise Healthcare Inc.’s long-term acute care hospitals and two skilled nursing facilities in states like Kansas, Utah and Texas. 

That deal is expected to be completed by the end of this month, a spokesperson said. 

When all of the acquisitions are completed, KPC’s healthcare system will be comprised of 18 hospitals, totaling over 2,500 beds, and three healthcare facilities across seven states. 

The combined entity will have approximately 10,000 employees and an estimated value of over $2 billion. 

“KPC has had a great history of turning around hospitals,” said KPC Healthcare Chief Executive Peter Baronoff, who joined the Santa Ana company last July. 

Baronoff, who co-founded and previously served as chairman and chief executive of Florida- based Promise, said that the combination of hospitals, clinics and skilled nursing facilities will enable KPC to provide “a variety of services critical to the communities these hospitals serve.” 

Daunting Task 

The Verity purchase looks likely to be KPC’s biggest-ever challenge, in terms of a turnaround. 

The hospitals were previously owned by the Daughters of Charity Healthcare System, which had continuous losses due to “mounting labor costs, low reimbursement rates and the ever- changing healthcare landscape,” according to a bankruptcy filing. 

It was sold in 2015 to private investor BlueMountain Capital Management LLC, which changed the hospital system’s name to Verity. In 2017, Nantworks, a company controlled by billionaire Dr. Patrick Soon-Shiong, owner of the Los Angeles Times, acquired a controlling stake in Integrity Healthcare, the company that manages Verity. 

Soon-Shiong poured tens of millions of dollars into the company to revitalize the hospitals, many of which are in lower-income neighborhoods. It reported a $111.4 million operating loss in 2018, triple that of the $35.3 million operating loss in 2017. 

Last year, Verity went into bankruptcy and its assets were listed for sale. In April, an affiliate of KPC Healthcare won the bidding. 

The transaction, which is still subject to review by the California Attorney General, is comprised of St. Francis Medical Center in Lynwood, St. Vincent Medical Center and St. Vincent Dialysis Center in downtown Los Angeles and Seton Medical Center in Daly City. The hospitals total 1,107 beds. Seton operates Seton Medical Center Coastside in Moss Beach, a 116-bed skilled nursing facility. 

The biggest prize is the St. Francis Medical Center, which was valued at $420 million. It’s a Level II trauma center that handles more than 80,000 emergencies a year, according to its website. The purchase gives KPC two major trauma centers in Southern California. 

As part of the agreement, KPC has agreed to keep main service lines open and make employment offers to substantially all employees at these facilities, including full-time, part- time and contract workers. 

KPC’s pledge was important to its winning court-overseen bid. 

“Labor is very important, [comprising] of 60% [of the cost] of the delivery of healthcare,” Chaudhuri said. 

Value Creator 

Chaudhuri declined to comment on taking on a task where others like Soon-Shiong didn’t succeed. 

“I don’t buy everything that comes to the market, I only buy things that would create value for my organization,” he said. 

Growing the base of medical workers is high on Chaudhuri’s priority. 

In 2003, he established the first private medical school in Bengal, India, where he now has a 25- acre campus comprised of KPC Medical College and Hospital, as well as the Shova Rani Nursing College and Paramedical College that provides medical services to residents of the Indian city of Kolkata. 

He’s excited about his latest education project—a new college in Hemet, where he resides with his wife, Sunanda. 

“The most important thing in healthcare today is the shortage of doctors, nurses,” he said. 

Demand for healthcare workers will outpace supply by 2025, and the U.S. will need to hire 2.3 million new healthcare workers to meet demand, according to a recent report by Mercer LLC. 

While the Hemet project is in the early planning stage, Chaudhuri said the program he’s starting will encourage doctors and nurses to go to rural areas, where the rate of physicians to patients is 1-to-2,500 in rural America, according to National Rural Health Association estimate. – 

“I have to tell you, I don’t have all the solutions and I don’t like to talk a lot before it happens, but I’d like to do my best,” Chaudhuri said.

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Promise Hospitals in Baton Rouge sold to California company

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Promise Hospitals in Baton Rouge sold to California company

Southern California health care business KPC Health has acquired Promise Hospital of Baton Rouge, a former subsidiary of Promise Healthcare, a Boca Raton, Florida-based hospital business.

Promise Healthcare Group’s hospital network across Louisiana was acquired several months after it filed for bankruptcy protection in 2018. The network was split between  KPC Health and Lexmark Holdings.

The Boca Raton, Florida-based company specialized in short-term and long-term acute care hospitals in addition to skilled nursing facilities in several states. In March, KPC Health announced that it planned to acquire a hospital in Louisiana, but did not specify which one. Financial details about the sale were not disclosed, but KPC Health did secure a line of credit for working capital from international investment bank Credit Suisse Group AG, records show.

Since filing for bankruptcy in November 2018, the Promise Healthcare sold off three Florida hospitals to Mechanicsburg, Pennsylvania Select Medical for $63 million. It also sold the 146-bed hospital in Shreveport along with its Bossier City hospital for roughly $35 million combined to Lexmark Holdings, records show.

Meanwhile, Santa Ana-based KPC Health has been on an acquisition spree, snapping up hospitals out of bankruptcy across the country in recent months. It had offered $610 million in a bid to buy a bankrupt chain of hospitals in California owned by Verity Health earlier this year and was awarded the deal in April. The deal to acquire the Baton Rouge hospital was lumped together with six other long-term acute care hospitals across the U.S. once run by Promise Healthcare.

Promise Hospital’s CEO for Baton Rouge, Kiley Cedotal, deferred questions to the new owners. Cedotal has been in the role since November 2014, according to his LinkedIn profile. KPC Health did not respond to requests for comment by late Wednesday. 

Promise Healthcare had filed for bankruptcy with more than $500 million in corporate debt. The hospital struggled overall amid a nationwide decrease in reimbursement rate for Medicare patients, according to court records. Promise Hospital attempted to invest in new business projects, which were later abandoned, records show. By fiscal year 2016, it had posted a $5.2 million operating loss. One year later, that swelled to $25.2 million.

Financially its Louisiana hospitals were performing better than those in other states, Danny Brown, landlord for Promise Hospital’s Baton Rouge facilities told The Advocate in November. But the company faced some legal battles.

In 2016, Promise Hospital was accused of improperly billing Medicare for treatment of a rare protein deficiency known as Kwashiorkor by the U.S. Department of Health and Human Services’ inspector general. Promise Hospital was also ordered to pay $1 million to Amerihealth Caritas Louisiana, a business which handles managed-care services for the state’s Medicaid program, over claims of double billing for services.

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Filipinos Breathe Sigh of Relief as Daly City Hospital Finds New Owners

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Filipinos Breathe Sigh of Relief as Daly City Hospital Finds New Owners

DALY CITY, California — In a town hall meeting after Seton Medical Center management filed for bankruptcy in August 2018, Girlie Macaraig, a registered nurse in Seton Medical Center for 40 years and her colleagues feared what could happen in the next months as a new owner was being.

“The patients too were scared as Seton has always been a good hospital for the community. Will the hospital still stay open? We have very good doctors, nurses — an overwhelming number of whom are Filipinos — and staff members consisting of orderlies, CNAs, dietitians, technicians and transporters most of whom are also Filipinos,” Macaraig worried.

“We still continue to work and care for our patients. We hope and pray that the hospital remains open and that it will support the city, the community, nurses and other hospital staff.”

Macaraig’s group’s prayers appear to have been answered. San Mateo County Supervisor David J. Canepa, whose 5th county district includes Daly City, announced that U.S. Bankruptcy Court Judge Ernest M. Robles approved KPC Health System’s acquisition of Seton Medical Center in Daly City, Seton Coastside in Moss Beach, St. Vincent Medical Center in Los Angeles and St. Francis Medical Center in Lynwood — all in California for $610 million.

KPC is owned primarily by Founder and Chairman Dr. Kali P. Chaudhuri. “KPC has committed to keeping these hospitals open and that’s incredible news for Seton’s employees and the tens of thousands of mostly vulnerable patients in San Mateo and San Francisco counties they care for each year,” disclosed Canepa.

“Now we have a prospective owner with a proven track record in California of operating and revitalizing multiple hospitals. I am optimistic that the new owner will respect the conditions set by the state Attorney General’s Office that mandate Seton remain a full-service hospital with emergency services until 2025.”

In an earlier exclusive interview a week before the bankruptcy court decision came out, Canepa shared that he had spoken with KPC Heath System Chief Executive Officer (CEO) Peter Baronoff.

“I made it very clear to them that we are looking for an acute care hospital that would continue to operate as is and provide services. Without Seton Hospital, there is a huge gap in the way we deliver health care and we talked about health care access that has now become a social justice aside from being a human right issue. Also, we have to make sure that all the nurses and all the other jobs remain,” reiterated Canepa.

The KPC-SGM Group presently operates Orange County Global Medical Center, Anaheim Global Medical Center, Chapman Global Medical Center and South Coast Global Medical Center all in Southern California.

On ensuring the earthquake safety capability of the hospital, Canepa assured that the Attorney General made it clear that Seton must be seismically safe until 2030, and that KPC has agreed to uphold this condition mandated by former California State Attorney General (now U.S. Senator) Kamala Harris.

Daly City Mayor Ray Buenaventura welcomed the good news that Seton Hospital would continue to operate under KPC Health System. “I have met the proposed new owners. My sense is that they are sincere. Daly City is a compassionate city and we will continue to govern with that guiding principle,” remarked Buenaventura.

Daly City Councilmember Juslyn Manalo stressed that “Seton hospital must remain as an institution central to our community. We will advocate for patient care and the workers,” Manalo promised.

In the remote possibility that the sale agreement fails, Canepa assured that there were multiple bidders and interested buyers. One such group is Apollo Medical Holdings (AMP) that has a hundred of its doctors serving in Seton Hospital.

AMP Chairman of the Board Dr. Kenneth Sim Apollo hopes the AMP and its doctors together are given the chance to make a bid for Seton if the current agreement does not work out.

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KPC Group Gets Court Approval to Acquire Four Verity hospitals

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KPC Group Gets Court Approval to Acquire Four Verity hospitals

A bankruptcy court judge has approved Corona-based KPC Group’s $610-million bid to acquire four of the nonprofit Verity Health System hospitals, including two in Southern California, KPC Group said Wednesday.

Verity’s board of directors had approved KPC Group’s bid Monday, but the state attorney general’s office still must sign off on the acquisition.

The four hospitals included in the KPC Group bid are St. Francis Medical Center in Lynwood, St. Vincent Medical Center and St. Vincent Dialysis Center in Los Angeles, Seton Medical Center in Daly City and Seton Coastside in Moss Beach.

Verity’s six hospitals were originally owned and operated by the Daughters of Charity of St. Vincent de Paul. After years of financial struggles, Integrity Healthcare took over management of the hospitals in 2015.

NantWorks, the Culver City company controlled by Dr. Patrick Soon-Shiong, purchased Integrity in 2017. (Soon-Shiong, a physician and entrepreneur, purchased The Times last year.)

In August, Verity filed for bankruptcy protection, citing mounting losses and debt.

The other two Verity hospitals — O’Connor Hospital in San Jose and St. Louise Regional Hospital in Gilroy — were sold to Santa Clara County in a transaction that closed last month. California Atty. Gen. Xavier Becerra had sought to halt the sale until the county agreed to conditions, such as requirements for job security and treatment of the poor, that were initially imposed by then-Atty. Gen. Kamala Harris in 2015. But in February, a federal judge refused to put a hold on the transaction.

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Seton Sale Overcomes Big Hurdle

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Seton Sale Overcomes Big Hurdle

Nearly three months after a bid to acquire Seton Medical Center in Daly City and Seton Coastside in Moss Beach was filed in federal bankruptcy court, Southern California-based KPC Health announced its $610 million bid for four hospitals was approved by U.S. Bankruptcy Court Judge Ernest M. Robles Wednesday, according to a press release issued by KPC Health.

By moving to acquire the two facilities in San Mateo County alongside St. Francis Medical Center in Lynwood, St. Vincent Medical Center in downtown Los Angeles and St. Vincent Dialysis Center, KPC Health’s offer to purchase the financially-challenged facilities formerly operated by Verity Health now awaits approval by California Attorney General Xavier Becerra.

News of the milestone for the two Seton facilities was welcomed by San Mateo County Supervisor David Canepa, who expressed relief that critical services would remain in place at the two health care facilities delivering care to the indigent. Having met with members of KPC Health, Canepa was confident the group will bring an end to the uncertainty that has been looming over the facilities many expected to shutter.

“I think they’re going to bring a tremendous amount of stability to Seton Medical Center that is needed at this time,” he said. “We’ve just saved … a hospital that was on the brink of extinction and … that is … something that should be celebrated.”

The “stalking horse” bid KPC Health filed in January was not exceeded by any other proposed bids and no auction was required for the four Verity Health hospitals. The group’s bid was also approved by Verity Health System’s Board of Directors April 15.

Owner and operator of seven full-service acute care hospitals in Southern California, KPC Health’s integrated health system is set to include 20 facilities across the nation once ongoing acquisitions of hospitals and skilled nursing facilities in Arizona, California, Kansas, Louisiana Mississippi, Texas and Utah are complete, according to the release.

Dr. Kali P. Chaudhuri, chairman of The KPC Group and KPC Health, said the judge’s decision Wednesday marks an important milestone for KPC Health’s bid to acquire the four remaining Verity Health hospitals. Despite an attempt on behalf of Becerra to block the sale of two other hospitals previously operated by Verity Health in San Jose and Gilroy, Santa Clara County’s bid on O’Connor Hospital and Saint Louise Regional Hospital was finalized in March, according to multiple news sources.

“We look forward to working with Verity Health on a successful acquisition and welcoming these important community hospitals into our integrated [health care] system,” Chaudhuri said in the release.

The financial uncertainty looming over the 350-bed Seton Medical Center, Daly City’s largest employer, as well as the 116-bed coastside hospital and skilled nursing facility has weighed heavily for officials, residents and employees of the facilities since Verity Health filed for bankruptcy in August.

County impact

Canepa represents north county’s District 5 on the Board of Supervisors and acknowledged the benefits of the sale for residents living in northern San Mateo County who depend on its services or are among Seton Medical Center’s 1,600 employees. But he also noted the benefits to county taxpayers who could have been on the hook for the hospitals if no buyer stepped forward.

County officials have already contributed some $25 million for patient care and set aside $15 million toward a seismic upgrade project at the Seton Medical Center, and Canepa expected the county to continue to help the hospitals when possible. But he also acknowledged San Mateo County Health officials have projected a structural deficit for County Health’s two-year budget starting in the 2019-20 fiscal year.

Canepa was also optimistic the hospitals would continue to be held to service obligations set by then-attorney general Kamala Harris when the New York hedge fund BlueMountain Capital purchased the six hospitals from the cash-strapped Daughters of Charity in 2015. Aimed at ensuring the safety-net hospitals continue offering services until 2025, the transaction was considered by some to be the largest and most complex nonprofit hospital transaction in California’s history.

Before Santa Clara County’s bid for the San Jose and Gilroy hospitals was approved, Becerra appealed the sale, asking at the time for the existing conditions protecting the health and safety of the hospital community to be preserved. Canepa expected Becerra to determine whether he would approve the sale in the next few weeks.

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California company buys Overland Park hospital

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California company buys Overland Park hospital

A California-based hospital operator now owns Promise Hospital of Overland Park after its parent company, Promise Healthcare, filed for Chapter 11 bankruptcy in November.

Strategic Global Management, a for-profit hospital operator run by main investor and orthopedic surgeon Kali Chaundhuri, recently bought the Overland Park facility. Chaundhuri is chairman and founder of the KPC Group of Companies, which includes Strategic Global.

Promise Hospital of Overland Park is a 56-bed, long-term, acute-care hospital at 6509 W. 103 St. Hospital officials said all questions about the transaction should be directed to KPC. It’s unclear what the new management plans for the facility; KPC officials did not respond to a request for comment.

Promise Healthcare, based in Boca Raton, Fla., filed for bankruptcy in November and is selling 14 hospitals and two skilled nursing facilities through U.S. Bankruptcy Court.

The company, now led by a chief restructuring officer, has more than $565 million in debt, plus unpaid interest of $110 million, accrued expenses and accounts payable of $94 million, and capitalized leases of $13 million, according to its motion to obtain a loan to keep its operations ongoing.

Promise Health Care of Overland Park reported declining gross revenue year over year, with $11.25 million in gross revenue from Jan. 1, 2018, to Nov. 4, 2018, compared with gross revenue of $13.99 million the year prior. The hospital also reported $26.39 million in assets and $97.07 million in liabilities at the time of filing. 

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