LOS ANGELES--(BUSINESS WIRE)--Stating that, “Nothing is more critical than ensuring that hospitals have the ability to treat patients with the utmost care and state of the art science,” Dr. Patrick Soon-Shiong today announced that NantWorks, LLC, has acquired a majority stake in Integrity Healthcare, LLC, Verity Health System’s management company, creating a unique opportunity for collaboration to make Verity Health a leader in innovative healthcare delivery, including personalized patient-centered healthcare solutions for every individual.
NantWorks and Blue Mountain, the former majority owner of Integrity Healthcare, committed to continue to invest in an effort to accelerate Verity’s revitalization efforts undertaken over the past 18 months. BlueMountain will maintain a minority interest in Integrity.
Verity Health is a nonprofit healthcare system employing more than 6,000 staff statewide. The hospitals include 1,650 inpatient beds, six active emergency rooms, a trauma center and a host of medical specialties including tertiary and quaternary care. Verity’s two Southern California hospitals are St. Francis Medical Center in Lynwood and St. Vincent Medical Center in Los Angeles. In Northern California, O’Connor Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City and Seton Coastside in Moss Beach are part of Verity Health.
Verity Health also includes Verity Physician Network and Verity Medical Foundation, encompassing hundreds of physicians across a variety of practice models, independent practice associations, ambulatory surgery centers and urgent care centers.
Since its creation in December 2015, Verity Health System has worked to revitalize its hospitals in Northern and Southern California and ensure financial sustainability in order to care for patients for generations to come – including the underserved.
As a part of the transaction between Integrity and NantWorks, BlueMountain Capital Management, LLC, is making additional funding available to continue Verity’s revitalization initiatives.
Integrity Healthcare was formed by BlueMountain, the private investment firm that committed to making available $260 million in capital for the revitalization of Verity Health System. The commitment was key to a transaction approved by former California Attorney General Kamala Harris and completed in December 2015.
In Verity Health’s first 12 months, comparing December 2015 data to December 2016, indicators of success include: a 7 percent increase in net patient revenue; a 1.3 percent increase in patient admissions; and, a 6.9 percent increase in inpatient surgeries.
Jim Pieri, portfolio manager at BlueMountain and a member of Verity’s Board of Directors, noted: "The partnership with NantWorks marks an exciting opportunity for our health system to gain strategic access to next generation technologies and to accelerate the pursuit of more differentiated delivery strategies, both of which will continue to transform and grow Verity. BlueMountain looks forward to continuing our involvement and support as this transformation continues."
NantWorks combines the collective promise of science and technology, making the latest advances accessible to every patient, no matter who or where they are, so they can stay one step ahead of their medical conditions. The Los Angeles-based company is led by Patrick Soon-Shiong, M.D., a surgeon, professor, scientist, entrepreneur, businessman and philanthropist who has devoted much of his life to finding a cure for cancer and advancing healthcare solutions that reduce costs, increase access and improve quality of care. Dr. Soon-Shiong will join Verity’s Board of Directors.
“Our commitment is to enhance the scope and resources of Verity Health so that, together, we can deliver the breakthrough treatments and cures that save lives, provide better patient outcomes and improve well-being,” Soon-Shiong said. “We will achieve this by applying the limitless powers of collaborative science and technology to transform healthcare practices and create a more efficient, more effective health system. Medical care is local and we strongly believe that community health systems should be supported with investment, technology and science to build next generation clinically integrated networks to drive better outcomes at a lower cost.
St. Vincent is the oldest hospital in Los Angeles, founded in 1856. The 200-year history of service to the poor by the Daughters of Charity of St. Vincent de Paul is inspiring. I know this first-hand, having practiced there and it is a privilege to be reconnected with this institution and healthcare system again. It is at this hospital where I performed the nation's first encapsulated islet cell transplant in 1993, and it is such a privilege to be reconnected with this institution and healthcare system again. It has been my lifelong dream to positively impact the outcomes of patients afflicted with life-threatening diseases, and through the care provided by this system we will devote our efforts to continue the legacy of delivering high-quality care to all Californians, including the underserved," he added.
“Verity and NantWorks said they are committed to working together to ensure that every man, woman and child finds the right care and the right treatment at the right time, with a focus on results. This collaboration will include the addition of groundbreaking technologies and expanded oncology, cardiac, orthopedic, neurology, urology, transplant and pediatric services. The system will invest in state of the art diagnostic and imaging services and next generation stem cell therapy. We are excited that Dr. Patrick Soon-Shiong and NantWorks have taken a significant interest in the continued progress of Verity Health,” said Jack Krouskup, chairman of the independent Verity Health System Board of Directors. “We look forward to partnering with NantWorks to further empower our hospitals and strengthen our Medical Foundation to deliver better outcomes for patients today and tomorrow.”
The Integrity executive team serves as the executive team for Verity Health, providing significant healthcare experience and leadership to ensure the health system’s long-term success.
“We are grateful for the ongoing support of BlueMountain and our Verity Board of Directors and the new opportunities to collaborate with NantWorks to accelerate our revitalization efforts,” said Andrei Soran, chief executive officer of Verity Health.
“Much has been accomplished across Verity Health, including the recruitment of experienced hospital leaders, physician engagement, acquisition of new technology, upgrades to our facilities and enhancements to our clinical programs,” Soran continued. “Our commitment is to revitalize our hospitals and create an integrated healthcare system that delivers better quality care.”
About NantWorks
NantWorks, LLC, is the umbrella organization for an ecosystem of companies committed to the convergence of 21st century innovative platforms to transform how we work, live and play: NantHealth, NantOmics, NantBioScience, NantCell and its affiliate NantKwest, NantPharma, NantMobile, NantStudio, NantCapital and NantCloud. Fact-based and solution driven, each of NantWorks’ division companies operates at the intersection of innovation and infrastructure.
Founded by Dr. Patrick Soon-Shiong, scientist and inventor of the first human nanoparticle chemotherapeutic agent Abraxane, the core mission for NantWorks is convergence: to develop and deliver a diverse range of technologies that accelerate innovation, broaden the scope of scientific discovery, enhance ground-breaking research, and improve healthcare treatment for those in need. NantWorks is building an integrated fact-based, genomically-informed, personalized approach to the delivery of care and the development of next generation diagnostics and therapeutics. For more information please visit www.nantmobile.com and www.nanthealth.com and follow Dr. Soon-Shiong on Twitter @Dr.PatSoonShiong.
