More than two months after shutting down all services and clinics, Madera Community Hospital officially filed for Chapter 11 bankruptcy on Friday.
According to a copy of the filing, the hospital reported liabilities between $10 and $50 million to at least 200 creditors, KVPR reports.
The filing reports the value of hospital assets range between $50 and $100 million, and it states funds will be available to unsecured creditors. Chapter 11 bankruptcy allows debtors to reorganize finances.
However, it’s unknown how the hospital will handle assets.
California Attorney General Rob Bonta in December conditionally approved the sale of financially distressed Madera to the Trinity Health Corporation. However, plans for Michigan-based Trinity to buy Madera fell through.
The 106-bed hospital located in the Central Valley offered services to more than 150,000 residents living in Madera and its surrounding communities. Many of those residents live in rural areas and relied on the hospital for critical care, as it is the only provider of emergency and lifesaving surgical services within a 30-minute drive. Read more.
