California anesthesia group files for bankruptcy after hospital contract lapses

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Citing a contract lapse with a California hospital network, Community Regional Anesthesia Medical Group in Fresno, Calif., filed for Chapter 11 bankruptcy June 16, according to The Business Journal.

The anesthesia group provided services to Fresno-based Community Medical Centers' three major hospitals. However, the contract between the hospitals and the anesthesia group recently expired. 

The anesthesia group said it had expected Community Medical Centers to renew its contract before allowing it to lapse. 

"For over 20 years [Community Regional Anesthesia] took great pride in providing excellent services to Community Medical Center and its facilities," Carolyn Larsen, executive director of Community Regional Anesthesia Medical Group, told The Business Journal. "It is very disappointing that [Community Regional Anesthesia] has gotten caught up in the political battle raging in Fresno, and that [Community Medical Center] elected to allow the contract to lapse."

Community Medical Centers said it put out a request for proposals for anesthesia groups and that Community Regional Anesthesia didn't submit one.

"In line with common, prudent business practices, and in advance of the expiration of the CRAMG agreement, Community requested bids from interested anesthesia service providers. Unfortunately, CRAMG did not provide a response to our request for a proposal," a spokesperson for Community Medical Centers told The Business Journal. "However, Community [Medical Centers] will continue to provide the same high-quality services from highly skilled anesthesia providers as we always have."

In the bankruptcy filing, the anesthesia group listed its assets between $1 million and $10 million and said it owes Community Medical Centers $5.1 million.

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