Adventist ends effort to reopen California city's only hospital

Roseville, Calif.-based Adventist Health said it will no longer pursue the management of Madera (Calif.) Community Hospital, which closed its doors last year.

Madera Community Hospital, the city's only hospital for about 66,000 residents, closed in December 2022 due to financial challenges and filed for bankruptcy in March. It has been seeking to reopen with a new financial partner. 

In July, Adventist reached an initial nonbinding agreement to take over Madera Community Hospital, and in August, the hospital secured a $52 million state emergency loan. The $52 million included a bridge loan of $2 million to help with operating costs while Adventist worked on a reopening plan, the state Department of Health Care Access and Information said, according to California Healthline. The state said Madera Community Hospital could get an additional $50 million loan once the state approves a reopening plan with Adventist.

However, Adventist said in a news release shared with Becker's on Nov. 16 that the health system is ending its management exploration with Madera Community Hospital.

"Adventist Health intended to create a management model that would not just reopen the hospital but ensure Madera Community Hospital could be sustainable for years," the health system said. "We worked together with renowned industry experts at Kaufman Hall to analyze data, operational costs and relevant information to develop a comprehensive business plan. Unfortunately, Adventist Health was unable to find a fiscally viable solution for the costly process of reopening and operating a closed facility, especially given the limited financial resources available and the current economic pressures facing rural and safety-net providers."

Adventist also expressed disappointment about the outcome, but said it "still remains committed to working with all parties concerned to find solutions to meet the healthcare needs of the people of Madera County."


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