California AG announces settlement with Verity and Prime

California Attorney General Xavier Becerra announced a settlement with Verity Health System of California, Inc. (Verity) and Prime Healthcare Services, Inc. (Prime), putting in place additional conditions on Verity’s sale of St. Francis Medical Center in Los Angeles County to Prime. The settlement requires Prime to provide funding for charity care and community benefit services in the communities surrounding St. Francis over the next six fiscal years. Over the course of the six fiscal years of the deal, the settlement requires Prime to provide $9.35 million per year in charity care, and approximately $1.6 million per year in community benefit services. Under California law any proposed sale of a non-profit health facility to a for-profit corporation must secure the approval of the state Attorney General.