The funds would have come through Arizona’s Medicaid safety-net care pool. However, city council members balked at giving the money because they did not want the funds used for the hospital’s bankruptcy process. The 25-bed SAMC filed for Chapter 11 bankruptcy in February due to high rates of charity care and other financial issues.
Annie Benson, CEO of SAMC, told the Herald that without the funds, the hospital will be stuck in neutral and will not be able to expand its services. She said there are no plans to close the hospital, though. Healthcare turnaround firm People’s Choice Hospital, based in Oak Brook, Ill., has reportedly agreed to take over SAMC, but no details were given on any transaction or management agreement.
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