Bankrupt California hospital finds path to reopen

Madera (Calif.) Community Hospital, which officially closed at midnight Dec. 30, 2022, and filed for Chapter 11 bankruptcy last March, has agreed to new management and an eventual sale of the hospital, the San Joaquin Valley Sun reported Dec. 19.

A news release shared with Becker's states that the hospital board on Dec. 18 selected a proposal from American Advanced Management for a temporary management services agreement to reopen and operate the 106-bed hospital and a plan that will lead to an acquisition.  

Madera Community Hospital, the city's only hospital for about 66,000 residents, closed a year ago after a plan by Livonia, Mich.-based Trinity Health to buy the hospital fell through. Trinity already owns and operates Saint Agnes Medical Center in Fresno, Calif. 

Roseville, Calif.-based Adventist Health reached an initial nonbinding agreement to take over Madera Community Hospital in July. However, in November, Adventist announced it would no longer pursue the management of the hospital, citing the inability to find a fiscally viable solution for reopening and operating a closed facility.

Madera has continued efforts to secure another reopening partner, and on Dec. 19, the hospital and Modesto-based American Advanced Management shared a news release announcing their management and acquisition agreement.

"American Advanced Management has the vision, experience and resources to reopen our hospital and create a strong future for our community's healthcare," Karen Paolinelli, the hospital's CEO, said in the release. "They have a track record of successfully reopening and sustaining closed hospitals in California, which uniquely qualifies them to move this forward. We're excited about their leadership and partnership."

Matthew Beehler, chief strategy officer for American Advanced Management, said in the release that the company's goal is "to restore services to the Madera community as quickly as possible," and that it will work with the hospital on any steps that can be taken ahead of bankruptcy court approval. 




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