LA billionaire gives $100m guarantee towards re-opening of California hospital

LA billionaire gives $100m guarantee towards re-opening of California hospital

News (International)

Los Angeles billionaire Patrick Soon-Shiong announced plans last week to underwrite Los Angeles County and the University of California (UC) plans to re-open Martin Luther King Jr. Hospital (MLK) for in-patient care by 2012, with a $100m (£60m) guarantee.

The Los Angeles County Board of Supervisors has committed $353.8m (£213.5m) to renovate, reopen and operate MLK as a 120-bed hospital. They are seeking a partnership with the University of California in which UC would provide physician staffing and services. The university requested that the county seek further financial support through a public-private partnership which led to the Chan Soon-Shiong Family Foundation being asked to provide the $100m guarantee.

The Foundation’s guarantee is intended to improve the ability of Los Angeles County to obtain a $100m (£60m) irrevocable letter of credit from a nationally recognised financial institution to help fund the renovation, reopening and staffing of the hospital.

"The county has made a commitment to this community," Soon-Shiong told the Los Angeles Times. "The whole issue is how do we ensure the financial viability of an institution where the patients are largely uninsured.

The hospital closed inpatient services two years ago after inadequate care led to medical errors and deaths. Soon-Shiong sent a letter to UC President Mark G. Yudof on 21st October detailing his plan.

"When Martin Luther King Jr. Hospital closed, it left an already underserved community without access to healthcare," Soon-Shiong wrote. "This unjust situation has compelled me to get involved."

Soon-Shiong is the 87th richest person in the US, according to Forbes, with an estimated worth of $5.5 bn (£3.3 bn). He made his fortune investing in biotechnology and developing anti-cancer drugs.

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