The Daughters of Charity Health System has finally closed the deal with New York private investment firm BlueMountain Capital Management to transfer control of six struggling Daughters of Charity hospitals, including two in Los Angeles County, and create Verity Health System.

The deal was approved by California Attorney General Kamala Harris on Dec. 3. As part of the agreement, BlueMountain will manage the hospitals through BlueMountain subsidiary Integrity Healthcare.

Daughters of Charity, which is based in Los Altos Hills, owns St. Francis Medical Center in Lynwood and St. Vincent Medical Center west of downtown Los Angeles.

The hospital chain was to be taken over by Prime Healthcare Services of Ontario earlier this year. But that bid was vehemently opposed by labor unions. Harris approved the transaction, but with so many restrictions that Prime walked away.

Other bids were sought and BlueMountain was eventually selected. BlueMountain said it would pay up to $260 million, money which can aid the hospitals.

“This large infusion of capital will provide a great jump-start on the many strategic, operational and capital initiatives desperately needed in our hospitals,” Daughters of Charity Health System President and Chief Executive Robert Issai said in a statement.

Verity also plans to invest in new clinical programs and marketing initiatives as well as new equipment and other improvements at each of the six hospitals, according to Jane Brust, a Verity Health System spokeswoman.

The agreement will also allow BlueMountain to keep the chain as a nonprofit for up to 15 years before deciding whether to purchase the system.

“Verity will proudly continue the mission of care begun by the Daughters of Charity more than 150 years ago,” Verity Health System Chief Executive Mitchell Creem said. “I am extremely pleased and grateful for the opportunity to carry on this tradition of excellence with new leadership and significant investments.”

Daughters of Charity immediately became a part of Verity Health System as a result of Monday’s closing, and the Daughters of Charity website has already been changed as a result.

Verity Health System’s headquarters is in Redwood City, but it has an office in Santa Monica.