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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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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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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KPC’s Global Mission to Save Community Healthcare Began in Hemet

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KPC’s Global Mission to Save Community Healthcare Began in Hemet

In 1984, a young orthopedic surgeon, Dr. Kali P. Chaudhuri, arrived in Hemet with the dream he one day would have a lasting impact on community healthcare.

Hemet happened to be the perfect place to set up shop and call home. Single-family residences were starting to become more prevalent, with businesses and retailers following right behind. The large retirement community made the need for local healthcare options all the more obvious and important. Dr. Chaudhuri began working out of Hemet Hospital, where he quickly built a successful practice and established a reputation as one of the top orthopedic surgeons in the country.

From 2001 to 2017, Mr. Baronoff served as Co-Founder, Chairman and CEO of Promise Healthcare, one of the largest acute care specialty hospital systems in the United States.

“Peter’s long history of effective management in healthcare and finance is invaluable to KPC and our efforts to continuously improve accessibility and deliver the very best quality care for patients,” said Dr. Kali P. Chaudhuri, Chairman of the KPC Group. “As the KPC hospitals continue to build on their recent growth and success, Peter’s vision and leadership are integral components to the strategy of leading us into the future as our healthcare system evolves.”

“I am honored to join the KPC family and lead the organization as we continue to grow and integrate our system of hospitals, physician groups, and ancillary operations,” said Mr. Baronoff. “The KPC hospitals, physicians, nurses and staff have saved and improved the lives of so many people throughout the Southern California community. I look forward to our journey together as one team with one mission – delivering the very best healthcare to the families of our communities.”

Mr. Baronoff brings with him decades of experience and successful leadership in healthcare and finance. From 2001 to 2017, he served as Co-Founder, Chairman and CEO of Promise Healthcare and additionally served as a three-term National President of the Acute Long-Term Hospital Association. In 2017, he was honored by the Sun Sentinel News Media Group as Palm Beach County Business Leader of the Year in South Florida for his commitment to the values of innovation, corporate growth and community involvement.

The former Deputy Mayor of Boca Raton, Florida, and two-term elected City Council Member, Mr. Baronoff also has extensive experience in shaping local public policy for his community. Recently, he served on the Executive Committee of Boca Raton Regional Hospital Board of Trustees and has devoted his service to several charitable organizations including Rotary International and the Boca Raton Police Foundation. Mr. Baronoff has the distinct honor of being selected and inducted into the Boy Scouts Court of Honor. He holds Master of Health Administration and Bachelor of Finance degrees from the Florida University system.

In 1984, a young orthopedic surgeon, Dr. Kali P. Chaudhuri, arrived in Hemet with the dream he one day would have a lasting impact on community healthcare.

Hemet happened to be the perfect place to set up shop and call home. Single-family residences were starting to become more prevalent, with businesses and retailers following right behind. The large retirement community made the need for local healthcare options all the more obvious and important. Dr. Chaudhuri began working out of Hemet Hospital, where he quickly built a successful practice and established a reputation as one of the top orthopedic surgeons in the country.

Shortly thereafter, patients from around the United States began making the journey to Hemet for their surgeries.  It was reminiscent of Dr. Chaudhuri’s journey here back in 1984.  While the efforts of Dr. Chaudhuri and his fellow physicians led to initial success and profitability, trouble lay ahead for Hemet Hospital.  Poor upper-level management and decision-making eventually led to many problems for the District Hospital System known as Valley Health System, which included Menifee and Moreno Valley.

That fateful decision resulted in the demise of Hemet Hospital, putting it on the path to bankruptcy and, perhaps most importantly, a pivotal turning point in Dr. Chaudhuri’s career.  Rather than moving on to another job, at another hospital, in another city, Dr. Chaudhuri made it his personal mission to save Hemet’s only hospital.

Galvanized by his efforts, other physicians regained their confidence in the hospital and joined the cause.  By 2010, public support for Dr. Chaudhuri’s mission to save the hospital reached critical mass, with 87 percent of voters approving the privatization of the District Hospital System.

Despite initial skepticism, the valuable community hospital that was once on the brink of bankruptcy continues its operations today as Hemet Valley Medical Center under Dr. Chaudhuri’s leadership.  The hospital’s financial position has completely turned around, and continuous improvements to the facility, technology, and staff are being made.

Due to these efforts, Hemet Valley Medical Center is now home to a medical education and residency program that is attracting some of the brightest young doctors from around the world.  Moreover, what Dr. Chaudhuri started right here in Hemet was only the beginning of his pursuit to save community healthcare.

Today, Dr. Chaudhuri serves as chairman of KPC Health, which owns and operates a nationwide integrated healthcare delivery system consisting of acute care hospitals, independent physician associations, medical groups, and various multi-specialty and ancillary facilities.  Hemet was the first of a series of hospital turnaround successes led by Dr. Chaudhuri.

In the past five years, KPC Health achieved a similar feat after fully acquiring a group four Orange County hospitals in Santa Ana, Anaheim and Orange.  More of the same appears to be on the horizon given KPC Health’s recent acquisition of seven Promise Healthcare hospitals and two skilled nursing facilities, as well as an astonishing $610 million bid to purchase four Verity Health Hospitals in Los Angeles and the Bay Area.  KPC Health’s national footprint spanning across eight states including Kansas, Utah, Mississippi, Arizona, Louisiana, and Texas including northwest Dallas is poised to become a 21-hospital system sometime this year.

Over the past decade, Dr. Chaudhuri has expanded his journey beyond healthcare.  The KPC Group includes a vast international real estate portfolio and a number of successful businesses throughout the pharmaceutical and biotechnology, education, real estate, infrastructure development, agriculture, architecture and engineering, alternative energy, waste management, travel services, and information technology industries.

For Dr. Chaudhuri, a dream that started in Hemet in 1984 has truly come to fruition in 2019.

 

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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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Peter Baronoff Appointed CEO of KPC Health Systems

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Peter Baronoff Appointed CEO of KPC Health Systems

Santa Ana, CA, July 12, 2018 (GLOBE NEWSWIRE) — Today, KPC Health System announced the appointment of Peter Baronoff as Chief Executive Officer of the KPC system of hospitals and Managing Director of KPC Global Management. In his role as CEO and Managing Director, Mr. Baronoff will oversee the executive operations of the health system’s corporate offices, its seven acute care hospitals, and affiliated medical groups.

From 2001 to 2017, Mr. Baronoff served as Co-Founder, Chairman and CEO of Promise Healthcare, one of the largest acute care specialty hospital systems in the United States.

“Peter’s long history of effective management in healthcare and finance is invaluable to KPC and our efforts to continuously improve accessibility and deliver the very best quality care for patients,” said Dr. Kali P. Chaudhuri, Chairman of the KPC Group. “As the KPC hospitals continue to build on their recent growth and success, Peter’s vision and leadership are integral components to the strategy of leading us into the future as our healthcare system evolves.”

“I am honored to join the KPC family and lead the organization as we continue to grow and integrate our system of hospitals, physician groups, and ancillary operations,” said Mr. Baronoff. “The KPC hospitals, physicians, nurses and staff have saved and improved the lives of so many people throughout the Southern California community. I look forward to our journey together as one team with one mission – delivering the very best healthcare to the families of our communities.”

Mr. Baronoff brings with him decades of experience and successful leadership in healthcare and finance. From 2001 to 2017, he served as Co-Founder, Chairman and CEO of Promise Healthcare and additionally served as a three-term National President of the Acute Long-Term Hospital Association. In 2017, he was honored by the Sun Sentinel News Media Group as Palm Beach County Business Leader of the Year in South Florida for his commitment to the values of innovation, corporate growth and community involvement.

The former Deputy Mayor of Boca Raton, Florida, and two-term elected City Council Member, Mr. Baronoff also has extensive experience in shaping local public policy for his community. Recently, he served on the Executive Committee of Boca Raton Regional Hospital Board of Trustees and has devoted his service to several charitable organizations including Rotary International and the Boca Raton Police Foundation. Mr. Baronoff has the distinct honor of being selected and inducted into the Boy Scouts Court of Honor. He holds Master of Health Administration and Bachelor of Finance degrees from the Florida University system.

The KPC system of hospitals serves residents of Southern California throughout Orange, Riverside, and San Bernardino counties, which includes nearly 8 million people. The KPC Group is a global leader in healthcare, pharmaceuticals, education, engineering and real estate. Originally founded by world-renowned orthopedic surgeon and entrepreneur, Dr. Kali Chaudhuri, the KPC Group has reached an unprecedented level of success through its vision, innovation, and leadership. The KPC system of hospitals includes Orange County Global Medical Center, South Coast Global Medical Center, Anaheim Global Medical Center, Chapman Global Medical Center, Victor Valley Global Medical Center, Hemet Valley Medical Center and Menifee Valley Medical Center.

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