California hospital closes, lays off more than 100 employees

Coalinga (Calif.) Regional Medical Center closed June 12, and the organization's skilled nursing facility will shut down by the end of the month.

The 24-bed hospital announced in May it would close by June 15 because of significant financial losses. After announcing plans to close, Coalinga Regional began scaling back services and laid off 100 employees, according to The Business Journal. About 75 employees remained to care for patients in the hospital's skilled care division.

Earlier this month, Coalinga Regional CEO Wayne Allen told The Business Journal the hospital may avoid closing due to a management contract being negotiated with Modesto, Calif.-based American Advanced Management Group. However, the management contract was not finalized in time to prevent the hospital from closing.

Coalinga Regional's debt totaled approximately $4.5 million as of early June, according to The Business Journal. Mr. Allen said the hospital's debt load was primarily due to a decline in inpatient volumes.

Coalinga Regional is the fourth rural hospital in California to close since 2010, according to research from the North Carolina Rural Health Research Program.

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