Closed California hospital files for bankruptcy, owes $250K to employees

Alyssa Rege - Print  | 

The board of trustees of Coalinga (Calif.) Regional Medical Center voted Sept. 5 to file for Chapter 9 bankruptcy protection, The Fresno Bee reports.

Coalinga Regional Medical Center CEO Wayne Allen told The Fresno Bee the hospital owes $5 million to unsecured creditors — $250,616 of which it owes to 115 employees for accrued vacation and sick time.

The hospital qualifies for Chapter 9 bankruptcy protection because it's a taxpayer-supported district hospital, the report states.

Coalinga Regional Medical Center ran out of cash earlier this year, and the hospital closed June 12, laying off 100 employees. It closed its skilled nursing facility July 16.

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