- The beleaguered Daughters of Charity Health System has received a $250-million lifeline from BlueMountain Capital Management, which will recapitalize and manage the six-hospital system. The New York firm may eventually purchase DCH.
- BlueMountain will sponsor Integrity Health to manage DCH; the hospital board will hand over its control to an independent board of directors while Integrity will provide "key management services."
- Under the terms of the deal, which must receive approval from the state attorney general, DCH will retain its nonprofit status.
The hospital is likely still holding its breath until it receives approval from AG Kamala Harris—and from the influential Service Employees International Union-United Healthcare Workers West, which was a vocal opponent of the proposed takeover by Prime Healthcare that collapsed earlier this year. So vocal, in fact, that DCH filed a lawsuit against SEIU-UHW in March alleging that the union used "extortionist threats" to try to block the sale of its six hospitals to Prime.
The union backed a takeover by another equity firm, Blue Wolf Capital Partners, and has said that it is still reviewing the details of this deal before it gives its blessing. "We had a much stronger grasp of the Blue Wolf bid," said SEIU-UHW president Dave Regan, "and were confident it protected critical health services for local communities."
The core Integrity team includes: Mitch Creem, a hospital finance expert who has worked at UCLA Health and Beth Israel Deaconess Medical Center, and Mark Meyers, who has worked in hospital operations at Dignity Health.