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Bankrupt California Hospital Receives Lifeline From Adventist, Report Says

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by Jonathan Weber
Fri, 28 Jul 2023 00:52:37 +0000

Bankrupt Madera Community Hospital has received a last-minute lifeline from the hospital chain Adventist Health, which reached a preliminary agreement to take over the shuttered hospital and save it from liquidation, The Fresno Bee reported July 27.

The deal comes as a federal bankruptcy court in Fresno weighs whether to force Madera to sell off its assets to satisfy creditors. The biggest creditor is Fresno’s St. Agnes Medical Center, which walked away from a deal to take over Madera and effectively forced it into bankruptcy. The hospital closed in January.

“I can confirm the [Madera Community Hospital] board accepted a letter of intent with a suitor,” Riley Walter, the hospital’s lead bankruptcy lawyer, told the Bee in an email. The paper identified the suitor as Adventist, a faith-based nonprofit health system that operates in California, Oregon, and Hawaii and recently took over another troubled hospital, in Bakersfield.

A lot still must happen for the Madera hospital to reopen. Madera County supervisors are considering whether to spend $500,000 to keep the hospital’s skeletal operations running after the bankruptcy court this week declined to authorize any spending beyond Aug. 4. The hospital has also applied for an $80 million loan from the state’s new distressed hospital fund, but it’s not clear how much it will receive.

Analysts said it would take many months to hire staff and resume operations at the hospital, the only one in the rural and majority-Hispanic agricultural county of Madera.

Rural hospitals across California and much of the country are struggling in the face of low reimbursements for low-income patients served by Medicaid, skyrocketing costs during the pandemic, and chronic staffing troubles. Madera also suffered from bad contracts with private insurers and management missteps, according to an article reported jointly by KFF Health News and The Fresno Bee.

Experts warn that reopening will be costly, and that any plan must address the underlying problems that caused Madera to go bankrupt in the first place.

Staffers said they were devastated when St. Agnes walked away from a deal to save the hospital last December. California Attorney General Rob Bonta blasted St. Agnes and its parent, Trinity Health, for trying to “extract every dollar possible” in the bankruptcy after walking away from the deal with no notice and little explanation. St. Agnes blamed the decision on complex circumstances and additional conditions imposed by Bonta, but he had agreed to most demands, experts said.

More details on the Adventist deal are expected by Aug. 1, when the Board of Supervisors will vote on whether to authorize the $500,000 to keep things running and the bankruptcy court will hold another hearing.

Madera Community Hospital board officials declined to comment to the Bee. The Adventist CEO could not immediately be reached, the newspaper reported.

This article was produced by KFF Health News, which publishes California Healthline, an editorially independent service of the California Health Care Foundation. 

By: Jonathan Weber
Title: Bankrupt California Hospital Receives Lifeline From Adventist, Report Says
Sourced From: kffhealthnews.org/news/article/bankrupt-madera-hospital-lifeline-adventist-health/
Published Date: Fri, 28 Jul 2023 00:52:37 +0000

Kaiser Health News

Readers Embrace ‘Going It Alone’ Series on Aging and Chastise Makers of Pulse Oximeters

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kffhealthnews.org – – 2024-11-22 04:00:00

SUMMARY: Letters to the Editor discuss various healthcare concerns. Gail Daniels shares her struggles caring for a mother with dementia, while Shava Nerad reflects on the challenges faced by those without family support. Gloria Rankin suggests using pen pals to combat social isolation. Zoe Joyner Danielson recalls racial bias in pulse oximeter development, while Suzann Lebda questions fluoride’s impact on dental health. Readers also address issues like Medicare Advantage, high drug costs for seniors, and the financial burden of prepaying for baby deliveries. Liviu Steier advocates for fluorescence in dental care, emphasizing its diagnostic benefits.

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Kaiser Health News

Georgians With Disabilities Are Still Being Institutionalized, Despite Federal Oversight

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kffhealthnews.org – Sam Whitehead – 2024-11-22 04:00:00

SUMMARY: Lloyd Mills, a 32-year-old with autism, cerebral palsy, and kidney disease, has faced prolonged hospitalization due to inadequate community support in Georgia. After being admitted to Grady Memorial Hospital for mental health issues, Mills waited over eight months for appropriate housing, highlighting the systemic failures of a state still grappling with the consequences of a 2010 Department of Justice lawsuit regarding care for people with developmental disabilities. Despite significant investments and improvements in services, challenges like workforce shortages and inadequate funding persist, often leaving individuals like Mills in hospitals, impacting their mental and physical well-being.

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Kaiser Health News

TV’s Dr. Oz Invested in Businesses Regulated by Agency Trump Wants Him To Lead

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kffhealthnews.org – Darius Tahir – 2024-11-21 18:01:00

SUMMARY: President-elect Donald Trump nominated celebrity doctor Mehmet Oz to head the Centers for Medicare & Medicaid Services (CMS). Oz, known for his investments in healthcare, tech, and food companies, holds significant stakes in UnitedHealth Group, CVS Health, Amazon, and other companies involved in health insurance and pharmaceuticals, raising potential conflicts of interest. His financial ties include hospital stocks and pharmaceutical investments. Oz has expressed support for Medicare Advantage and criticized the food and healthcare industries. Critics question whether Oz can separate his financial interests from his role, particularly with companies doing business with the federal government.

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