Palm Drive Hospital, a public-owned hospital in Sebastopol, Calif., has filed for Chapter 9 bankruptcy, according to a Press Democrat report.
In addition, the board voted 4-1 to shutter inpatient and emergency department services by April 28, according to the report. Palm Drive's financial difficulties came to light last week, when the board approved measures to file for bankruptcy and shut down the hospital.
However, some physicians have pitched proposals to take over the hospital, but they urged officials to not file for bankruptcy or force the hospital into temporary closure, which they said could force people to leave and ruin chances at a revival.
Palm Drive Hospital is licensed for 37 beds but is only staffed for 12. Since last July, the rural hospital has lost more than $1 million due to large declines in inpatient admissions, reductions to Medicare and Medicaid payments and competition. In 2007, the hospital filed for bankruptcy and exited the process three years later.
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