Los Angeles Business Journal

State Hospitals Hopeful for Funding Shot in Arm

HEALTH CARE & BIOTECH By Los Angeles Business Journal Monday, October 5, 2009

Now, the original plans for the Chan Soon-Shiong Translational Research Institute have expanded to include four additional institutes, plus the offices of the Chan Soon-Shiong Family Foundation. Plans are for a health informatics center that will seek more effectively to disseminate medical research, a center for clinical trials and related activities, and a center for neuroscience research and brain tumor care. The foundation has made a $100 million grant to St. John's to support the work of the centers.

Soon-Shiong ranked No. 1 this year on the Business Journal's Wealthiest Angelenos list with an estimated net worth of $6 billion. He said he was attracted to St. John's not only by its proximity to his Westside companies, but by the welcoming attitude of the facility's management and its owner, the Sisters of Charity of Leavenworth, a Catholic order.

"This is a faith-based community hospital that was interested, as I am, in having health care focus less on bureaucracy and more on the patient, with the science developing from that," said Soon-Shiong in an interview before last week's dedication of the Chan Soon-Shiong Life Sciences Center.

Hospital Gets Financing

Downey Regional Medical Center Hospital received an assist last week from El Segundo's London & Pacific Healthcare Inc., enabling the hospital to obtain $10 million in debtor-in-possession financing as it reorganizes.

The 199-bed hospital serving Southeast Los Angeles filed for Chapter 11 bankruptcy last month, citing rising costs and poor reimbursement rates. It hopes to exit Chapter 11 within a year.

London & Pacific Capital Advisors served as a placement agent and financial adviser in the deal with Healthcare Finance Group, a specialty lender targeting small companies and institutions. London & Pacific Healthcare is a private equity and corporate finance firm targeting the health care, hospitality and financial services sectors.

Staff reporter Deborah Crowe can be reached dcrowe@labusinessjournal.com or at (323) 549-5225, ext. 232.

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