Mountain View, CA (February 9, 2019) — Silicon Valley Medical Development (SVMD) today announced its intention to purchase the assets of five medical clinics in northern California that are currently owned and operated by Verity Medical Foundation (VMF).
Verity Health System, currently in chapter 11 bankruptcy proceedings along with VMF, indicated in a WARN letter to its employees that it intended to close the clinics. Under the proposed SVMD asset purchase agreement, SVMD would acquire equipment and furnishings inside those clinics, and assume responsibility for maintaining electronic medical records. If the Court approves the proposed agreement, SVMD would plan to open new clinics to service communities affected by the closures.
“We currently operate several local clinics and can provide continuity of care and service to these patients,” said Bruce Harrison, president of SVMD.
According to Harrison, if the offer is approved by the bankruptcy court, SVMD would lease five clinic locations and enter into a professional services agreement with San Jose Medical Group (SJMG) physicians.
“Our organization and its dedicated physicians have been providing care to patients of these clinics for over 60 years, and we are like family,” said Dr. Shabnam Husain, Internist and Chair of SJMG. “We are optimistic and hopeful that SVMD can obtain the assets to open new clinics in a timely manner, providing a new home for our physicians to care for our patients in these communities.”
Harrison added, “We believe this would be a positive solution to a difficult situation and best serve our community’s health care needs. These are dedicated physicians with loyal patients in need of a new operating partner that shares their mission and vision to provide the best care possible. SVMD, in partnership with these physicians, can well fulfill that role.”
SVMD currently owns and operates medical clinic sites in Mountain View, San Jose, Los Gatos and Cupertino, California. “We have worked hard to prepare a fair bid and lay the groundwork for necessary partnerships to quickly provide continuity of care. As Verity clinics close, we believe our plans would provide for a positive outcome for these physicians, their patients and our community as whole,” said Harrison.