Distressed nonprofit hospitals in California are using chapter 11 to gain leverage against the attorney general, whose office critics say has caused some sales to collapse, The Wall Street Journal reports.
Beverly Hospital near Los Angeles tried and failed for years to sell itself. It turned the corner when it filed for bankruptcy.
The chapter 11 filing in April gave the hospital operator some leverage against the state’s attorney general, who has the authority to mandate prospective buyers to maintain costly services such as emergency and charity care, and to accept patients covered by government-backed healthcare programs. Read more.
