California hospital avoids closure, enters 5-year management contract

Coalinga (Calif.) Regional Medical Center announced in May it would close by June 15 because of significant financial losses. However, the hospital will avoid shutting down after entering into a management contract with Modesto, Calif.-based American Advanced Management Group, according to The Fresno Bee.

Under the five-year agreement with AAMG, the license for the 24-bed hospital will remain with the local healthcare district, and AAMG will manage the hospital's operations.

After announcing plans to close last month, Coalinga Regional began scaling back services. Hospital CEO Wayne Allen told The Fresno Bee the goal is to reopen the emergency department and other services in the near future.

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