Nossaman Healthcare Partner Richard Spohn Quoted On Proposed Daughters Of Charity Health System Deal

12.09.2015
Daily Journal

Nossaman Healthcare Partner Richard Spohn was quoted in the Daily Journal story, "Hospital Chain Deal Gets Approval, With Conditions."  The story focused on California Attorney General Kamala Harris’ approval of an agreement between the Daughters of Charity Health System hospital chain and BlueMountain Capital Management LLC.  Harris approved a deal for BlueMountain to invest in Daughters of Charity--with an option to buy the chain outright in three years.  The approval for the deal includes conditions similar to those she set for the proposed deal between Prime Healthcare and Daughters of Charity earlier this year, a deal that was eventually scuttled.  Spohn was quoted regarding the deal being the first nonprofit hospital transaction to involve a hedge fund buyer (BlueMountain). I cannot recall a hedge fund insurance incursion of any scale, let alone on this scale. It’s anomalous and it's portentous in sort of an ominous way," Spohn said.  "The monetization of nonprofit assets in this fashion is worrisome."

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