Beverly Hospital eyes sale to Adventist Health White Memorial

By Sarah Lizee

Olympia, Wash., Aug. 7 – Beverly Hospital Foundation is seeking to sell all of its assets to White Memorial Medical Center, doing business as Adventist Health White Memorial (AHWM) for about $81.61 million, according to a motion filed Monday with the U.S. Bankruptcy Court for the Central District of California.

The debtors held an auction on June 27, and at the conclusion, they named American Healthcare Systems Foundation Inc. (AHS) and Layton 26, LLC as the successful bidders. The bids provided for a total purchase price of $116 million, consisting of $14.81 million from the Layton bid, $33 million from the American Healthcare Systems bid and $68 million in assumed obligations.

On July 5, the debtors filed an initial motion seeking approval of the sale to AHS and Layton.

In the weeks following the auction, the debtors, consultation parties, successful bidders and other parties in interest engaged in extensive discussions and negotiations regarding the transactions.

However, the parties were unable to complete final documentation consistent with the terms agreed at the auction within the original deadlines set forth by the court.

At the court’s direction, the debtors provided additional dates and deadlines for them to propose a sale that took into consideration the debtors’ severe cash constraints and operational considerations for the hospital.

The debtors then received inbound interest from several parties, including AHS and AHWM, the previous stalking horse purchaser.

Although AHS provided favorable terms, AHWM was the only party to provide an executed asset purchase agreement and demonstrate its immediate ability to close a viable sale transaction to save the Beverly Hospital, the company said.

The debtors also said they have concerns regarding AHS’ ability to fund hospital operations during the transition without AB 1112 funds.

Montebello, Calif.-based Beverly Hospital filed bankruptcy on April 19 under Chapter 11 case number 23-12359.

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