GILROY—The proposed sale of Gilroy’s Saint Louise Regional Hospital and five other Daughters of Charity facilities to a New York-based hedge fund will be the topic of an Oct. 15 public meeting in Gilroy.
A representative from the California Attorney General’s Office will host a 2 p.m. public hearing in council chambers to gather input on the transaction, according to an announcement from Deputy Attorney General Wendi Horwitz. It’s one of six public hearings taking place in October around the state.
In July, Daughters of Charity officials announced their board of directors selected BlueMountain Capital Management, LLC as the top bidder for the six-hospital system. The hedge fund manages $22 billion in assets around the world, according to the company’s website.
BlueMountain plans on recapitalizing the struggling Catholic hospital system and injecting more than $250 million into the facilities. The hospitals themselves would be managed and operated by a new company called Integrity Healthcare, LLC, based on terms of the agreement the attorney general is currently reviewing.
As part of the public hearing, a consultant hired to analyze the impacts the proposed change in ownership would have on surrounding communities will be presenting a report, Horwitz said.
California law requires the attorney general review and approve any and all sales of nonprofit health care facilities. The office has the authority to place conditions on transfers. Reports prepared by consultants are considered alongside sentiments expressed by members of the public throughout the review process, according to the attorney general office’s website.
A similar public hearing hosted by Horwitz took place in January, when the Daughters of Charity sought to sell six hospitals to Ontario-based Prime Heathcare. Hundreds flocked to Gilroy City Hall for the meeting, including union members who work for the Daughters of Charity Health System around the state.
The Service Employees International Union–United Healthcare Workers West’s leadership opposed the sale to Prime, anticipating Prime’s top executives would slash essential services and lay off staff to balance the books. The California Nurses Association supported the transaction. The unions had picketers outside City Hall, chanting slogans about their respective preferences in a buyer.
This time around, however, labor groups involved with the hospitals have been less active.
A spokesman for the SEIU-UHW said Wednesday the union has not taken a formal stance on the proposed sale to BlueMountain. The CNA has not taken a formal stance either, but in a press release its members called on the prospective buyer to honor the Daughters of Charity’s commitment to charity care and keep existing services.
“My expectation is that this new buyer will honor our contract and pension obligations to retain the healthcare workers who have committed themselves to our community for all these years,” said Donna Fischer, a registered nurse at Saint Louise.
CNA co-president Malinda Markowitz added, “We encourage the attorney general to conduct a rigorous review to assure preservation of hospital and patient care services for the largely underserved communities that have long depended on Daughters of Charity hospitals for the critical care they need.”
Members of the public who would like to speak at the meeting on the sale of Saint Louise on Oct. 15 may sign up by Oct. 13 or do so in council chambers, according to Horwitz’s announcement.
Any other written comments on the sale can be emailed to we***********@do*.gov and they must be received by Oct. 20 for consideration.
A public hearing will take place at 2 p.m. Oct. 15 in council chambers of Gilroy City Hall. The public is invited to make comments, which will be recorded by a representative of the attorney general.
Written comments on the proposed sale of Saint Louise Regional Hospital must be submitted to the Attorney General’s Office by Oct. 20.
Alternatively, comments can be emailed to we***********@do*.gov, sent via fax to (213) 897-7605 or mailed to Deputy Attorney General Wendi Horwitz at 300 S. Spring St., Ste. 1702, Los Angeles, CA 90013.
