Through an already closed deal and an investment of $260 million, the Daughters of Charity Health System is now officially under the Management of an East Coast hedge fund. Reports have it that the two institutions have been in a wrangle for the last two years. However, there was a relief for the public that an amicable solution has been reached even though through the intervention of California’s Attorney General, Kamala Harris.
Speaking about the approval of the transaction, DCHS President and CEO, Robert Issai, expressed optimism that the move would facilitate the implementation of a facelift that the hospital chain of six hospitals urgently needs. Nevertheless, Harris recommended the release of a minimum of $180 million in investments to expedite the improvement of the facility.
The largest non-profit hospital shall now be known as Verity Health System and under the management of Integrity Healthcare, a subsidiary of BlueMountain Capital Management. At the same time, they shall retain the non-profit status quo for at least another 15 years.
Speaking on behalf of Verity Health System and as the chief executive officer, Mitchell Creem said that their main focus will be to give the best to the communities they serve. They are also optimistic of continue upholding the mission of care begun by the Daughters of Charity more than 150 years ago.
And to achieve their intended goals, Verity intends to plough in millions in capital improvements, the likes of upgraded medical equipment as well as expanded medical services. And despite the challenge facing BlueMountain of increasing revenues, Creem acknowledges they have a strategy, which they think will work; luring patients with private insurance.
Verity will also attempt to attract back those physicians and patients who may have left the facility over the years for fear of uncertainty. The Daughters hospital has been serving low-income patients who all along during the altercation have been in fear that the hospitals would close.
But all said and done, Issai is enthusiastic that the large infusion of capital will reserve the system’s undertaking of care, and protecting labor agreements and pensions for current and former employees.