Madera, CA, leaders are expected to commit $500,000 to cover another month of expenses at bankrupt Madera Community Hospital, as hospital leadership searches for a buyer, per Becker’s.
County leaders said that the funding would keep away creditors of the shuttered hospital, who want to liquidate its assets. Madera Community Hospital CEO Karen Paolinelli said that unnamed buyers are interested in reopening the hospital as a scaled back acute care facility.
The hospital — which has been closed since the start of 2023 — also applied for an $80 million loan from the newly created Distressed Hospital Loan Program. Madera Community Hospital will hear back in August, if the zero-interest loan is approved.
In a bankruptcy hearing this week, U.S. District Judge Rene Lastreto II gave the hospital until Aug. 4 to continue its spending plan and look for a buyer.
