Patrick Soon-Shiong wants to buy St. Vincent hospital himself for coronavirus treatment center

Billionaire businessman had intended to purchase 366-bed facility near Downtown through family foundation until state attorney general voiced concerns

Los Angeles /
Apr.April 09, 2020 09:40 AM
Dr. Patrick Soon-Shiong, California AG Xavier Becerra and St. Vincent’s (Credit: Google Maps)
Dr. Patrick Soon-Shiong, California AG Xavier Becerra and St. Vincent’s (Credit: Google Maps)

UPDATED, April 9, 10:27 a.m.: Billionaire businessman Patrick Soon-Shiong now wants to personally buy the financially-troubled St. Vincent Medical Center, which the state  is now leasing to treat Covid-19 patients.

Soon-Shiong last week said he wanted to buy the 366-bed hospital out of bankruptcy through his Chan Soon-Shiong Family Foundation. Verity Health System owns the facility, which had been forced to shutter in January, and California is now leasing it for $2.6 million a month.

Attorney General Xavier Becerra warned that the Soon-Shiong foundation purchase could be “self-dealing,” because the businessman owns a separate company that is a creditor in Verity’s bankruptcy proceedings, according to the Los Angeles Times. Soon-Shiong offered to pay $135 million for the 134-year-old hospital near downtown.

Soon-Shiong now says he’ll “fund the purchase personally, instead of through the foundation, so as to avoid the baseless appearance of a conflict,” according to the report.

He bought the Los Angeles Times in 2018 and moved its headquarters to El Segundo, and has greatly expanded his real estate holdings across Southern California in recent years. But the hospital purchase appears only intended to ensure that the struggling facility has long-term viability.

Soon-Shiong has said he wants to turn it into a coronavirus “command center,” hoping St. Vincent’s can accept coronavirus patients to relieve the pressure on other hospitals, and also wants to bring in experts on the virus to work there, the Times reported. California remains under a statewide stay-at-home order, with all nonessential businesses closed.

Becerra said his office has the power to review the sale of any nonprofit hospital in the state.

Attorneys for Verity, however, claim the company doesn’t operate the property as a hospital so the attorney general’s approval would not be necessary. A hearing on the proposed sale is scheduled for Friday. [LAT]Dennis Lynch 

Correction: A previous version of this story incorrectly identified Los Angeles as leasing the hospital. In fact, it is the state of California. 


Related Articles

arrow_forward_ios
Super 8 Canoga Park (Google Maps)
Los Angeles seeks $30M to buy motels for homeless
Los Angeles seeks $30M to buy motels for homeless
Southern California median home price tacks on $85,000 in October
Southern California median home price tacks on $85,000 in October
Southern California median home price tacks on $85,000 in October
(iStock)
USC: rents to rise in SoCal through 2023, metro centers to join suburbs on hikes
USC: rents to rise in SoCal through 2023, metro centers to join suburbs on hikes
LA-NY split over housing bucks in Biden’s “Build Back Better” package
LA-NY split over housing bucks in Biden’s “Build Back Better” package
LA-NY split over housing bucks in Biden’s “Build Back Better” package
Hotel union asks feds for answers on Relevant Group’s EB-5
Hotel union asks feds for answers on Relevant’s EB-5
Hotel union asks feds for answers on Relevant’s EB-5
Home prices continue to increase (iStock)
Southern California ekes out another record on home price
Southern California ekes out another record on home price
The mandate will take effect on November 4th (Getty)
City of LA’s vaccine mandate will apply to all indoor retailers
City of LA’s vaccine mandate will apply to all indoor retailers
Councilmember Joe Busciano and Council President Nury Martinez (Getty, Busciano)
LA delays vote on strict vaccine requirement for indoor spaces
LA delays vote on strict vaccine requirement for indoor spaces
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...