California AG’s request to stay Verity Health hospital sale denied

By Caroline Salls

Pittsburgh, Feb. 6 – The California Attorney General’s request for a stay of the order approving the sale of Verity Health System of California, Inc.’s assets to Santa Clara County pending the outcome of an appeal was denied Tuesday by the U.S. Bankruptcy Court for the Central District of California.

Attorney general Xavier Becerra said he appealed the asset sale order, disagreeing with the court’s findings that he had waived his right to object to the sale of Verity’s Hospitals, that he was prohibited from contesting the sale and that the sale of a nonprofit health care facility to a public entity is not subject to review by the California Attorney General.

Becerra said in the stay motion that he is likely to succeed, based on the merits of his appeal.

Verity is a Los Angeles-based nonprofit health care system. The company filed bankruptcy on Aug. 31 under Chapter 11 case number 18-20151.

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