Rep. Eshoo and Supervisor Mueller Celebrate California Attorney General Lawsuit Holding Seton Coastside Owner Accountable

Redwood City - Congresswomen Anna Eshoo and San Mateo County Supervisor Ray Mueller today applauded the California Attorney General's decision to file a lawsuit that seeks to hold AHMC Healthcare, Inc. accountable and to reopen Seton Coastside's emergency services.

Rep. Eshoo and Supervisor Mueller have pressed for action to hold AHMC Healthcare, Inc., accountable since it closed Seton Coastside's emergency care since April 2024

In the lawsuit, filed in San Mateo County Superior Court, Attorney General Rob Bonta alleges that AHMC violated conditions of the sale of Seton Coastside to AHMC. The Attorney General further asserts the AHMC never needed to close its emergency rooms. The suit seeks specific performance and civil penalties and the restoration of certain services at Seton Medical Center in Daly City.

"I'm highly pleased that the Attorney General agreed with my call to take enforcement action to hold the owners of Seton Coastside, AHMC Healthcare, Inc., accountable for breaching its contract and for not meeting its obligation to provide quality, emergency health care to my constituents on the Coast," Rep. Eshoo said. "The action today reinforces an important message: the State of California will not allow bad actors to gamble with the wellbeing of patients."

"The closure of Seton Coastside by AHMC was more than a breach of contract - it was a violation of the trust our community placed in them," Supervisor Mueller said.

"I want to thank California Attorney General Bonta for responding to the calls for justice from Congresswoman Eshoo and my office. Together we are making it clear that such actions will have consequences. AHMC will face accountability for their failure to uphold legally binding agreements meant to protect healthcare access on the Coastside," he said.

Under California law, any transaction involving the sale or transfer of control of a healthcare facility owned by a nonprofit corporation must secure the approval of, or waiver of notice and consent of, the Attorney General. The Attorney General's July 27, 2020, conditions required the continuation of services, according to the suit.

"This is not just about righting a wrong-it's about sending a message," Supervisor Mueller said. "No corporation can put financial gain over people without facing the full weight of the law. We are committed to restoring healthcare access and safeguarding our community's future. Above all our, every member of the community deserves the healthcare they were promised."

Supervisor Ray Mueller's Office
Phone: (650) 363 - 4569
Email: [email protected]