Congresswoman Anna Eshoo and San Mateo County Supervisor Ray Mueller applauded California Attorney General Rob Bonta's decision to file a demand seeking to hold AHMC Healthcare, Inc. accountable and reopen Seton Coastside emergency services.
In the lawsuit, filed in San Mateo County Superior Court, Attorney General Bonta alleges that AHMC violated the terms of its sale of Seton Coastside to AHMC, and claimed AHMC never had to close its emergency rooms.
The lawsuit seeks specific performance and civil penalties and restoration of certain services at Seton Medical Center in Daly City.
“I am extremely pleased that the California Attorney General has responded strongly to my call to hold AHMC accountable for its egregious violations of the law and its breaches of the Purchase and Sale Agreement. Today’s action reinforces an important message: irresponsible actors will not be allowed to play with the well-being of patients,” said Rep. Eshoo.
Supervisor Mueller noted that AHMC's closure of Seton Coastside was more than a breach of contract, it was a violation of the trust the community placed in them.
“AHMC will be held accountable for failing to comply with legally binding agreements intended to protect access to health care on the coast,” he said.
Under California law, any transaction involving the sale or transfer of control of a health care facility owned by a nonprofit corporation must be approved or waived by the Attorney General for notification and consent.
The conditions imposed by the attorney general on July 27, 2020, required the continuity of services, according to the lawsuit.
"This isn't just about righting a wrong, it's about sending a message," Supervisor Mueller said. "No corporation can put profit over people without facing the full force of the law. We are committed to restoring access to health care and safeguarding the future of our community. Above all, every member of the community deserves the health care they were promised."
Attorney General Bonta noted that the conditions established with AHMC were specifically put in place to protect patients, ensure continued access to critical health care services, and safeguard the health and well-being of the community; however, he said, AHMC has clearly failed to meet its obligations.
"This failure to meet required standards is completely unacceptable and I hold them fully responsible for putting patient care and public health at risk," he stressed.
The lawsuit also alleges that AHMC has allowed 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 or requesting an amendment of conditions from the Attorney General.
These reductions in services have negative consequences for the community, including forcing people to travel farther for care, increasing patient volumes at neighboring hospitals that provide those services, and increasing fees for services at competing hospitals.
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