The California attorney generals office has issued conditional approval for the sale of 208-bed South Coast Medical Center, Laguna Beach, Calif., provided that the buyer operates it as a general acute-care hospital for at least five more years. The 284-bed Mission Hospital, Mission Viejo, Calif., intends to buy the assets of the Laguna Beach hospital on June 30 from 19-hospital Adventist Health, Roseville, Calif.
Calif. gives conditional OK to sale of Adventist facility
Both Adventist and Mission Hospital have agreed to comply with the attorney generals terms for the sale, according to a news release. The 25-page opinion from the state office lays out nearly two dozen conditions, including that the new owner agrees to the annual provision of $418,000 in community-benefit spending; $408,000 in yearly charity care outlays; $5 million in total capital spending; and the transfer of $1.8 million into a community foundation for cancer treatment.
California Deputy Attorney General Wendi Horwitz also required that the new owners or any future assignee run the hospital as a general acute-care facility with a 24-hour emergency room for at least five more years, but that condition only applies if the pending 2013 deadline for seismic retrofitting is extended or the hospital is exempted from the building code requirements.
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