Golden State Today

California Attorney General Rob Bonta has waived the notice and consent requirements stipulated in the Corporations Code for the transfer of control of St. Rose Hospital and Saint Rose Medical Building, Inc. to Alameda Health System (AHS). This decision allows both the hospital and medical building to come under AHS's control. According to California law, transactions involving the sale or transfer of control of a healthcare facility owned by a nonprofit corporation must receive approval or a waiver from the Attorney General.

“At the California Department of Justice, our primary responsibility in reviewing healthcare transactions is to protect the people of California,” said Attorney General Bonta. “With today’s waiver, I am confident that AHS will provide continued access to high-quality, affordable healthcare to our most indigent and vulnerable Californians within the Hayward community.”

St. Rose Hospital is a general acute care hospital licensed for 171 beds with services including a 24/7 emergency department, critical care and ICU beds, cardiac services, labor and delivery, medical/surgical services, sub-acute/skilled nursing services, and mammography services. AHS is an integrated public health care system located entirely within Alameda County and organized as a public hospital authority aimed at improving efficiency, effectiveness, and economy in community health services.

In deciding whether to grant this waiver, Attorney General Bonta reviewed factors outlined in Corporations Code section 5923. Considering AHS’s longstanding role as a healthcare provider for vulnerable populations in Alameda County and commitments made by both AHS and St. Rose Hospital—a financially distressed safety-net hospital serving Hayward—the waiver was granted. Provisions include maintaining clinical services, retaining current employees and medical staff in good standing, continuing financial assistance and charity care programs, Medi-Cal and Medicare participation, as well as investment by AHS in St. Rose Hospital.

The Healthcare Rights and Access Section (HRA) within the California Department of Justice actively works to increase and protect affordable, accessible quality healthcare across California. HRA attorneys monitor various aspects of healthcare work conducted by the Attorney General’s office including nonprofit healthcare transactions; consumer rights; anticompetitive consolidation; drug pricing issues; privacy concerns; civil rights such as reproductive rights and LGBTQ-related healthcare rights; along with public health issues related to tobacco products.

A copy of the Attorney General’s waiver approval letter can be found here.