California hospital faces 'imminent risk of closure,' says board

Tulare (Calif.) Regional Medical Center, a 112-bed hospital managed by Tulare-based HealthCare Conglomerate Associates, is in a dire financial situation.

The hospital entered into a management agreement in 2014 with HCCA, which is led by Benny Benzeevi, MD. HCCA led Tulare Regional through a financial turnaround, but the hospital has not sustained those results.

On Sept. 30, Tulare Regional filed for Chapter 9 bankruptcy. 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 Kevin Northcraft, president of the hospital's board, according to the Visalia Times-Delta.

Dr. Benzeevi claims Tulare Regional owes HCCA about $7 million, but HCCA wasn't listed among the hospital's list of creditors filed in the bankruptcy case.

More articles on healthcare finance:

California hospital files for bankruptcy after missing payroll
With 18 days cash on hand, NYC Health + Hospitals calls on state to release $380M in DSH funding
7 hospitals with strong finances

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months