Attorney General Bonta: AHMC Must Maintain Healthcare Services

Sues hospital corporation for failing to comply with Attorney General's conditions

Lawsuit seeks specific performance, civil penalties, and injunctive relief

SAN MATEO COUNTY - California Attorney General Rob Bonta today announced a lawsuit against AHMC Seton Medical Center, LLC (AHMC), for failing to comply with Attorney General conditions requiring the corporation to maintain certain healthcare services at Seton Medical Center and Seton Coastside. In the lawsuit, filed in San Mateo County, the Attorney General alleges that AHMC violated the Attorney General's July 27, 2020 conditions by closing Seton Coastside in its entirety. The Attorney General is seeking specific performance and civil penalties. Additionally, the injunctive relief the Attorney General is seeking is crucial to the reopening of the Seton Coastside facilities and the restoration of services at Seton.

"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," said Attorney General Bonta. "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."

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, including emergency departments (ED) at both hospitals, a stroke center certification, STEMI receiving center designation, general acute care hospital (GACH) and the skilled nursing facilities (SNF), among others. AHMC has permitted the stroke certification and STEMI designation to lapse at Seton Medical Center and has closed the SNF, GACH, and ED at Seton Coastside since April 2024, without notifying nor seeking an amendment of the conditions from the Attorney General.

These reductions in services have negative consequences for the community including requiring people to travel farther for care, increasing volumes of patients at neighboring hospitals that offer those services, and escalating rates for services at those competing hospitals.

A copy of the lawsuit can be found here.