3 hospital bankruptcies in 2023

Three hospitals have filed for bankruptcy so far in 2023, and all three are located in California. 

1. Madera (Calif.) Community Hospital filed for Chapter 11 bankruptcy March 10. Madera Community officially closed at midnight Dec. 30, after Livonia, Mich.-based Trinity Health's plan to buy the hospital fell through. Trinity already owns and operates Saint Agnes Medical Center in Fresno, Calif. 

Madera Community leaders had hoped to avoid bankruptcy and explored a number of options, including looking for another organization to take over operations. However, without a potential buyer coming forward, the hospital moved ahead with the bankruptcy filing. 

2. Montebello, Calif.-based Beverly Hospital filed for Chapter 11 bankruptcy April 19 as it hoped to pursue a buyer and avoid closure.   

The hospital had secured $13 million in financing to keep operating as it searched for a buyer. Hospital officials said rising costs outpacing government reimbursement rates were to blame for the situation.

Beverly had unsuccessfully attempted to merge with three systems. Hospital officials blamed the failed mergers on the review process by the California attorney general. 

3. San Benito Health Care District, the board overseeing Hollister, Calif.-based Hazel Hawkins Memorial Hospital, voted May 22 to file for Chapter 9 bankruptcy, which it said would pave the way to "tackle the systemic challenges it continues to face."

The hospital will remain open and "fully committed to delivering quality patient care for the greater community while leadership looks for a strategic partner or buyer."

A November fiscal emergency declaration by the board authorized a Chapter 9 filing, but the hospital district decided to focus on short-term financial stabilization and creditor negotiations. In the last six months, it has recorded more than $11 million in cost savings, loans and prepayments to support the district through summer. A hospital spokesperson said the filing will allow it to "deal with larger issues we just can't tackle outside of Chapter 9."

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