A New York investment firm has offered California's financially struggling Daughters of Charity Health System a $250-million cash infusion, the Los Angeles Times writes. The deal, announced Friday, comes four months after for-profit medical network Prime Healthcare pulled an $843-million offer to buy Daughters of Charity's six Catholic hospitals serving primarily low-income communities in the Los Angeles and San Francisco Bay areas.
Under the new deal, BlueMountain Capital Management would establish a separate entity to take over day-to-day management of the chain and would get an option to buy Daughters of Charity after three years. The hospitals would remain nonprofit.
Daughters of Charity officials have said the system is losing $10 million a month and faced bankruptcy after the Prime sale fell through. The BlueMountain deal must be approved by California Attorney General Kamala Harris, whose strict conditions on the Prime sale prompted the hospital company to withdraw.