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LEGAL NEWSLINE

Friday, November 8, 2024

Attorney General Bonta sues AHMC over healthcare service closures

State AG
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Attorney General Rob Bonta | Official website

California Attorney General Rob Bonta has filed a lawsuit against AHMC Seton Medical Center, LLC (AHMC) for not adhering to conditions set by the Attorney General. These conditions required AHMC to maintain specific healthcare services at Seton Medical Center and Seton Coastside. The lawsuit, lodged in San Mateo County, claims that AHMC breached the July 27, 2020 conditions by completely closing Seton Coastside. The legal action seeks specific performance and civil penalties, as well as injunctive relief aimed at reopening Seton Coastside facilities and restoring services.

Attorney General Bonta emphasized the importance of these conditions: “The conditions that were set forth with AHMC were specifically implemented to protect patients, ensure continued access to critical healthcare services, and safeguard the community’s health and well-being.” He further stated, “Unfortunately, AHMC clearly has not upheld its obligations. This failure to meet the required standards is completely unacceptable, and I’m holding them fully accountable for placing patient care and public health at risk.”

According to California law, any transaction involving the sale or transfer of control of a healthcare facility owned by a nonprofit corporation must receive approval from the Attorney General. The July 27, 2020 conditions mandated the continuation of various services including emergency departments (ED), stroke center certification, STEMI receiving center designation, general acute care hospital (GACH), and skilled nursing facilities (SNF). Since April 2024, AHMC allowed the lapse of stroke certification and STEMI designation at Seton Medical Center and closed SNF, GACH, and ED at Seton Coastside without notifying or seeking an amendment from the Attorney General.

These service reductions have impacted the community by increasing travel distances for care, adding pressure on neighboring hospitals that provide these services, and raising service rates at competing hospitals.

A copy of the lawsuit is available online.

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