Bankrupt Tulare Regional Medical Center seeks to break ties with management company

Tulare (Calif.) Regional Medical Center, which filed for bankruptcy Sept. 30, is taking steps to boot its management company, Tulare-based HealthCare Conglomerate Associates, according to the Valley Voice.

The Tulare Local Healthcare District, which operates the 112-bed hospital, held an emergency board meeting Monday to initiate the process of severing ties with HCCA. The board unanimously voted to reject the district's contracts with HCCA.

Kevin Northcraft, the board's president, told the Valley Voice the board authorized lawyers handling the bankruptcy case "to do whatever is necessary to effectuate the rejection of the contracts and ensure the ongoing and continuous operation of the healthcare facilities."

The judge in the bankruptcy case will now decide whether to approve the rejection of the contracts.

The hospital's bankruptcy petition revealed it has zero cash in its bank accounts. The hospital faces "imminent risk of closure," according to bankruptcy documents signed by Mr. Northcraft.

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