Attorney General Rob Bonta filed a lawsuit Wednesday against AHMC Healthcare, the operator of Seton Medical Center, for the temporary closure of its Coastside emergency room in Moss Beach.
AHMC, a crucial health care provider for northern and coastal San Mateo County, has faced operational struggles since taking over the beleaguered hospital in 2020. In March, employees at its Daly City location protested changes to their health benefits, and county officials criticized the prolonged closure of the Moss Beach emergency room for repairs due to last year’s storms.
Hospital officials expect work to be completed by December 2024, which some residents say is far too long, as it is the only emergency room in the coastal area.
As a stopgap measure, San Mateo County granted Dignity Health Medical Foundation $480,000 last June to expand its urgent care services for coastal residents.
AHMC acquired Seton from Verity Health Systems, following bankruptcy proceedings. The hospitals serve as a safety net for the region’s low-income residents.
Then-Attorney General Xavier Becerra approved the sale under conditions requiring Seton’s Daly City and Coastside centers to remain open for at least five and a half years and to provide care for individuals earning below 250% of the federal poverty level, while partially subsidizing care for other economically disadvantaged patients.
“The conditions set with AHMC were designed to protect patients and ensure continued access to critical health care services,” Bonta said. “Unfortunately, AHMC has failed to meet these obligations, putting patient care and public health at risk. This is unacceptable, and we’re holding them accountable.”
Bonta is asking the court to enforce the agreement, impose fines and issue an order to reopen the Coastside facilities and restore services at Seton Medical Center.
Under state law, the sale or change of control of a nonprofit health care facility requires the attorney general’s approval. When AHMC bought Seton, it agreed to maintain services, including emergency departments, stroke certification, heart attack care and skilled nursing facilities. According to Bonta’s office, AHMC has let key certifications lapse and closed facilities, including the Coastside ER, without notifying the attorney general.
AHMC did not immediately respond to requests for comment.
San Mateo County Supervisor Ray Mueller, who represents the coastal areas, called the Coastside closure “more than a breach of contract.”
“It was a violation of the trust our community placed in them,” Mueller said. “The attorney general’s action lays the groundwork for a county claim that AHMC violated the terms of a multimillion-dollar loan San Mateo County provided.”
Rep. Anna Eshoo, who represents parts of San Mateo and Santa Clara counties, previously wrote to Bonta in July, calling the closure “devastating” for her constituents. She noted that the county has spent $500,000 to provide emergency care since the shutdown.
“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,” 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.”
Mueller reiterated the county’s commitment to restoring health care access: “Our community deserves the health care it was promised.”
