KPC Group Gets Court Approval to Acquire Four Verity hospitals

KPC Group Gets Court Approval to Acquire Four Verity hospitals

A bankruptcy court judge has approved Corona-based KPC Group’s $610-million bid to acquire four of the nonprofit Verity Health System hospitals, including two in Southern California, KPC Group said Wednesday.

Verity’s board of directors had approved KPC Group’s bid Monday, but the state attorney general’s office still must sign off on the acquisition.

The four hospitals included in the KPC Group bid are St. Francis Medical Center in Lynwood, St. Vincent Medical Center and St. Vincent Dialysis Center in Los Angeles, Seton Medical Center in Daly City and Seton Coastside in Moss Beach.

Verity’s six hospitals were originally owned and operated by the Daughters of Charity of St. Vincent de Paul. After years of financial struggles, Integrity Healthcare took over management of the hospitals in 2015.

NantWorks, the Culver City company controlled by Dr. Patrick Soon-Shiong, purchased Integrity in 2017. (Soon-Shiong, a physician and entrepreneur, purchased The Times last year.)

In August, Verity filed for bankruptcy protection, citing mounting losses and debt.

The other two Verity hospitals — O’Connor Hospital in San Jose and St. Louise Regional Hospital in Gilroy — were sold to Santa Clara County in a transaction that closed last month. California Atty. Gen. Xavier Becerra had sought to halt the sale until the county agreed to conditions, such as requirements for job security and treatment of the poor, that were initially imposed by then-Atty. Gen. Kamala Harris in 2015. But in February, a federal judge refused to put a hold on the transaction.

KPC’s Global Mission to Save Community Healthcare Began in Hemet

KPC’s Global Mission to Save Community Healthcare Began in Hemet

In 1984, a young orthopedic surgeon, Dr. Kali P. Chaudhuri, arrived in Hemet with the dream he one day would have a lasting impact on community healthcare.

Hemet happened to be the perfect place to set up shop and call home. Single-family residences were starting to become more prevalent, with businesses and retailers following right behind. The large retirement community made the need for local healthcare options all the more obvious and important. Dr. Chaudhuri began working out of Hemet Hospital, where he quickly built a successful practice and established a reputation as one of the top orthopedic surgeons in the country.

Shortly thereafter, patients from around the United States began making the journey to Hemet for their surgeries.  It was reminiscent of Dr. Chaudhuri’s journey here back in 1984.  While the efforts of Dr. Chaudhuri and his fellow physicians led to initial success and profitability, trouble lay ahead for Hemet Hospital.  Poor upper-level management and decision-making eventually led to many problems for the District Hospital System known as Valley Health System, which included Menifee and Moreno Valley.

That fateful decision resulted in the demise of Hemet Hospital, putting it on the path to bankruptcy and, perhaps most importantly, a pivotal turning point in Dr. Chaudhuri’s career.  Rather than moving on to another job, at another hospital, in another city, Dr. Chaudhuri made it his personal mission to save Hemet’s only hospital.

Galvanized by his efforts, other physicians regained their confidence in the hospital and joined the cause.  By 2010, public support for Dr. Chaudhuri’s mission to save the hospital reached critical mass, with 87 percent of voters approving the privatization of the District Hospital System.

Despite initial skepticism, the valuable community hospital that was once on the brink of bankruptcy continues its operations today as Hemet Valley Medical Center under Dr. Chaudhuri’s leadership.  The hospital’s financial position has completely turned around, and continuous improvements to the facility, technology, and staff are being made.

Due to these efforts, Hemet Valley Medical Center is now home to a medical education and residency program that is attracting some of the brightest young doctors from around the world.  Moreover, what Dr. Chaudhuri started right here in Hemet was only the beginning of his pursuit to save community healthcare.

Today, Dr. Chaudhuri serves as chairman of KPC Health, which owns and operates a nationwide integrated healthcare delivery system consisting of acute care hospitals, independent physician associations, medical groups, and various multi-specialty and ancillary facilities.  Hemet was the first of a series of hospital turnaround successes led by Dr. Chaudhuri.

In the past five years, KPC Health achieved a similar feat after fully acquiring a group four Orange County hospitals in Santa Ana, Anaheim and Orange.  More of the same appears to be on the horizon given KPC Health’s recent acquisition of seven Promise Healthcare hospitals and two skilled nursing facilities, as well as an astonishing $610 million bid to purchase four Verity Health Hospitals in Los Angeles and the Bay Area.  KPC Health’s national footprint spanning across eight states including Kansas, Utah, Mississippi, Arizona, Louisiana, and Texas including northwest Dallas is poised to become a 21-hospital system sometime this year.

Over the past decade, Dr. Chaudhuri has expanded his journey beyond healthcare.  The KPC Group includes a vast international real estate portfolio and a number of successful businesses throughout the pharmaceutical and biotechnology, education, real estate, infrastructure development, agriculture, architecture and engineering, alternative energy, waste management, travel services, and information technology industries.

For Dr. Chaudhuri, a dream that started in Hemet in 1984 has truly come to fruition in 2019.

California company buys Overland Park hospital

California company buys Overland Park hospital

A California-based hospital operator now owns Promise Hospital of Overland Park after its parent company, Promise Healthcare, filed for Chapter 11 bankruptcy in November.

Strategic Global Management, a for-profit hospital operator run by main investor and orthopedic surgeon Kali Chaundhuri, recently bought the Overland Park facility. Chaundhuri is chairman and founder of the KPC Group of Companies, which includes Strategic Global.

Promise Hospital of Overland Park is a 56-bed, long-term, acute-care hospital at 6509 W. 103 St. Hospital officials said all questions about the transaction should be directed to KPC. It’s unclear what the new management plans for the facility; KPC officials did not respond to a request for comment.

Promise Healthcare, based in Boca Raton, Fla., filed for bankruptcy in November and is selling 14 hospitals and two skilled nursing facilities through U.S. Bankruptcy Court.

The company, now led by a chief restructuring officer, has more than $565 million in debt, plus unpaid interest of $110 million, accrued expenses and accounts payable of $94 million, and capitalized leases of $13 million, according to its motion to obtain a loan to keep its operations ongoing.

Promise Health Care of Overland Park reported declining gross revenue year over year, with $11.25 million in gross revenue from Jan. 1, 2018, to Nov. 4, 2018, compared with gross revenue of $13.99 million the year prior. The hospital also reported $26.39 million in assets and $97.07 million in liabilities at the time of filing. 

KPC Group Offers $610M For Four Verity Health Hospitals

KPC Group Offers $610M For Four Verity Health Hospitals

Verity filed a motion Thursday in Los Angeles bankruptcy court to implement a public auction where other buyers could outbid KPC for Francis Medical Center in Lynwood, St. Vincent Medical Center in Los Angeles, Seton Medical Center in Daly City and Seton Coastside in Moss Beach. The winning bid is subject to the approval of the court and the California attorney general, depending on the buyer.

“Verity has remained committed to finding the right buyer to provide uninterrupted service and operations for all employees, physicians and patients, and we will continue that commitment as this process advances,” Rich Adcock, CEO of Verity Health, said in prepared remarks. KPC pledged to keep current employees.

KPC Group, which is the parent company of KPC Healthcare that operates seven hospitals in Southern California, would pay $420 million for St. Francis, $120 million for St. Vincent and $70 million allocated for Seton Medical Center and Seton Coastside, according to bankruptcy filings.

Private investment firm BlueMountain Capital Management bought the six-hospital system spanning Southern and Northern California from the financially encumbered Daughters of Charity Health System in late 2015, when it changed its name to Verity Health. BlueMountain pledged to invest up to $260 million in exchange for a lease on its information technology assets.

Nantworks, led by controversial entrepreneur Dr. Patrick Soon-Shiong, bought its stake in July 2017 and infused another $148 million in capital as Soon-Shiong eyed a testing ground for his precision medicine endeavors.

But Verity filed for bankruptcy in September, overburdened by more than $1 billion in bond debt and unfunded pension liability as well as its aging infrastructure.

Sumanta Chaudhuri Named Chief Medical Officer

Sumanta Chaudhuri Named Chief Medical Officer

HEMET, Calif., Dec. 04, 2018 (GLOBE NEWSWIRE) — Today, KPC announced the appointment of Dr. Sumanta Chaudhuri as Chief Medical Officer for Hemet Valley Medical Center and Menifee Valley Medical Center. Hemet Valley Medical Center and Menifee Valley Medical Center are two of seven hospitals affiliated with KPC’s southern California-based health system.

A graduate of Northwestern University’s Feinberg School of Medicine, Dr. Sumanta Chaudhuri most recently served as Program Director of the Transitional Year Internship for graduate medical residents at Hemet Valley Medical Center.

In addition, Dr. Chaudhuri served as the Associate Program Director of the Internal Medicine Residency Program and Director of the Peri-Operative Clinic of the Eye Institute at the Medical College of Wisconsin. Was selected as the Associate Program Director of the Internal Medicine Residency Program at Riverside Community Hospital, and served as Medical Director for local Independent Physician Associations and Hospitalist groups.

“Dr. Sumanta Chaudhuri brings with her a demonstrated track record of success, skill, passion, and expertise in healthcare through her clinical and academic credentials that are a tremendous benefit to the KPC health system and the communities we serve,” said Peter Baronoff, CEO of KPC Health.

“I am honored to have this opportunity to serve as Chief Medical Officer for Hemet Valley Medical Center and Menifee Valley Medical Center and will continue to pursue my lifelong goal of supporting high quality and accessible healthcare for our patients and their families,” said Dr. Chaudhuri.

KPC Announces New Partnership

KPC Announces New Partnership

SANTA ANA, Calif., Sept. 20, 2018 (GLOBE NEWSWIRE) — Today, KPC Health, which provides health care services in Orange County at Anaheim Global Medical Center, Chapman Global Medical Center, Orange County Global Medical Center and South Coast Global Medical Center announced a newly formed partnership with HealthCare Partners, a part of DaVita Medical Group and a division of DaVita Inc. to help better meet the healthcare needs of the Orange County community.

Both organizations agreed to working on an integrated delivery system of coordinated care that will serve HealthCare Partners’ CalOptima Medi-Cal, Commercial and Medicare Advantage patients.

Together, the organizations plan to offer a seamless approach to managing patient care through open lines of communication and care coordination between HealthCare Partners physicians and the KPC Health system of hospitals where they practice.

“Our new partnership with HealthCare Partners will enhance KPC Health’s system of integrated hospitals’ ability to effectively provide exceptional care and a unified approach to treatment, recovery and overall health for our patients,” said Chief Executive Officer Peter Baronoff. “Not only does this partnership enhance our vision for KPC Health, but it also marks an enormous milestone in our expansion of providing superior integrated healthcare to the communities in which our hospitals, physicians and healthcare professionals, serve as one team.”

KPC Health has successfully established a group of integrated healthcare delivery systems consisting of acute care hospitals, Independent Physician Associations (IPAs), medical groups, urgent care facilities, and various fully integrated multi-specialty medical facilities throughout the western United States.

The KPC Group is a global leader in healthcare, pharmaceuticals, education, engineering and real estate. Founded by world renowned Orthopedic Surgeon and entrepreneur Dr. Kali Chaudhuri, Chairman and CEO, The KPC Group, has amassed over $10 billion in assets, including hospitals, clinics, schools, commercial real estate properties and agricultural research centers.

DaVita Medical Group is a division of DaVita Inc., a Fortune 500® company, that operates and manages medical groups and affiliated physician networks in California, Colorado, Florida, Nevada, New Mexico and Washington. A leading independent medical group in America, DaVita Medical Group has over two decades of experience providing coordinated, outcomes-based medical care in a cost-effective manner. DaVita Medical Group’s teammates, employed clinicians and affiliated clinicians provided care for approximately 1.7 million patients. For more information, please visit

Jeff Corless 714.676.8878
Kelsey Eiben 714.676.8879


Peter Baronoff Appointed CEO of KPC

Peter Baronoff Appointed CEO of KPC

Santa Ana, CA, July 12, 2018 (GLOBE NEWSWIRE) — Today, KPC Health System announced the appointment of Peter Baronoff as Chief Executive Officer of the KPC system of hospitals and Managing Director of KPC Global Management. In his role as CEO and Managing Director, Mr. Baronoff will oversee the executive operations of the health system’s corporate offices, its seven acute care hospitals, and affiliated medical groups.

From 2001 to 2017, Mr. Baronoff served as Co-Founder, Chairman and CEO of Promise Healthcare, one of the largest acute care specialty hospital systems in the United States.

“Peter’s long history of effective management in healthcare and finance is invaluable to KPC and our efforts to continuously improve accessibility and deliver the very best quality care for patients,” said Dr. Kali P. Chaudhuri, Chairman of the KPC Group. “As the KPC hospitals continue to build on their recent growth and success, Peter’s vision and leadership are integral components to the strategy of leading us into the future as our healthcare system evolves.”

“I am honored to join the KPC family and lead the organization as we continue to grow and integrate our system of hospitals, physician groups, and ancillary operations,” said Mr. Baronoff. “The KPC hospitals, physicians, nurses and staff have saved and improved the lives of so many people throughout the Southern California community. I look forward to our journey together as one team with one mission – delivering the very best healthcare to the families of our communities.”

Mr. Baronoff brings with him decades of experience and successful leadership in healthcare and finance. From 2001 to 2017, he served as Co-Founder, Chairman and CEO of Promise Healthcare and additionally served as a three-term National President of the Acute Long-Term Hospital Association. In 2017, he was honored by the Sun Sentinel News Media Group as Palm Beach County Business Leader of the Year in South Florida for his commitment to the values of innovation, corporate growth and community involvement.

The former Deputy Mayor of Boca Raton, Florida, and two-term elected City Council Member, Mr. Baronoff also has extensive experience in shaping local public policy for his community. Recently, he served on the Executive Committee of Boca Raton Regional Hospital Board of Trustees and has devoted his service to several charitable organizations including Rotary International and the Boca Raton Police Foundation. Mr. Baronoff has the distinct honor of being selected and inducted into the Boy Scouts Court of Honor. He holds Master of Health Administration and Bachelor of Finance degrees from the Florida University system.