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Santa Clara County May Buy Bankrupt Hospitals
Verity Health Systems filed for California Bankruptcy protection in August of 2018. The nonprofit health care system operated four San Francisco Bare Area hospitals with over $500 million in long-term debt and all healthcare facilities needing major updates. Even before their Chapter 11 bankruptcy case, the organization has been looking for buyers for its struggling facilities. This week announced the location of potential buyers with the Santa Clara Country working to purchase the insolvent hospitals
California Hospitals
The sale of the two hospitals, the O’Conner Hospital in San Jose and the Saint Louise Regional Hospital in Gilroy, will be significant as they are responsible for the care of a large number of low-income individuals who live in those communities. With around 87% of the patients receiving Medicare or Medi-Cal, the hospitals are huge assets to the community. A Chapter 11 bankruptcy in California will allow both facilities to remain operational throughout the bankruptcy process.
Santa Clara County Offer
Santa Clara County has officially tendered an offer to buy both the hospitals from the financially struggling company Verity Health Systems as part of their $235 million bankruptcy reorganization. If a US Bankruptcy Court Judge approves Verity’s request to sell the hospitals in December, the company will have the opportunity to compete with any other buyers that may come forward. As such, the bid doesn’t necessarily guarantee that the County will win the auction, but city officials cited in the matter said they feel confident about the competitiveness of their offer.
Sacramento California Bankruptcy
Just like business has debt relief options, the US Congress has afforded individuals who are struggling with debt or insolvency an opportunity to file a California Bankruptcy petition for debt relief. Depending on your income and debt, you may be eligible to have some or all of your unsecured debt legally eliminated under the US Bankruptcy Code. Contact a Fairfield bankruptcy attorney to discuss your situation and options if you have more debt than you could pay off within 5 years.