Heart Hospital of BK LLC

Jun. 6—Adventist Health has agreed to acquire Bakersfield Heart Hospital for a nominal sum after years of sale talks accelerated by recent financial challenges left over from the pandemic. Roseville-based Adventist, which now operates four hospitals in Kern County since the change took effect June 1, described the transaction as an opportunity to save 300 jobs at Bakersfield Heart while preserving its legacy of patient care. "This is a significant opportunity to continue great care in the community," President Jason Wells of the Adventist Health Central California Network said in an interview Tuesday evening. "It is a treasured part of the community." The arrangement ends 47-bed Bakersfield Heart's 24 years of independent ownership by local physicians who saw little choice but to relinquish their stake after big financial losses during the pandemic forced the hospital last fall to lay off 114 employees. That's when positions were cut across the organization to avoid closing departments including the medical center's emergency room. Dr. Brij Bhambi, who was a part-owner of Bakersfield Heart, said he and others had to walk away from their ownership stakes for as little as $1 "for the good of the employees who have given their heart and soul for the good of the community." "We hit (the) end of the road," he said. "There were no dollars. And there was only so much we could do." While Bakersfield Heart has gone through a series of ownership changes over the years, it has always been at least partly owned by local physicians — until the agreement with Adventist. Bhambi said talks about selling the hospital dated to at least 2012, when ownership was talking about a possible acquisition by Dignity Health, owner of three hospitals in Bakersfield. Wells said it was in April when Adventist "made the decision to lean in" to the possibility of an acquisition after Bhambi reached out about moving forward with a deal. Locally, Adventist runs hospitals in Bakersfield, Delano and Tehachapi. In January, the nonprofit replaced its CEO with its chief strategy officer, who was tasked with leading a new, combined network joining its Kern County division with that of its wider Central Valley network. Wells said Adventist plans to "subsidize the care (at Bakersfield Heart) and make it sustainable." Ideally, its workforce will return to the 400 employees it had prior to the layoffs disclosed in September, he added. Aspects of the sale remain in escrow even as Adventist has taken over daily operations of Bakersfield Heart, Wells noted. Adventist said in a news release plans are underway to integrate Bakersfield Heart's clinical operation into its new owners' network of 105 clinics and eight hospitals across the Central Valley.

Surgery Partners, Inc. (NasdaqGS:SGRY) acquired unknown majority stake in Heart Hospital of BK, LLC from Hospital Management Group on October 30, 2020. Surgery Partners, Inc. (NasdaqGS:SGRY) completed unknown majority stake in Heart Hospital of BK, LLC from Hospital Management Group on October 30, 2020.