Oroville (Calif.) Hospital and its parent organization, OroHealth, each filed petitions for Chapter 11 bankruptcy protection Dec. 8 to facilitate a transaction aimed at securing the hospital’s long-term future.
The court-supervised process will allow the hospital to continue operations while seeking a partner with the financial and operational resources to invest in the organization and support its mission, according to a Dec. 8 hospital news release.
“We believe this filing is an important step toward securing the hospital’s long-term future as a vital healthcare provider and employer in our community,” the hospital said. “The purpose of the filing is to facilitate a court-supervised transaction with a partner that has the resources and operating experience to invest in the hospital and maintain its mission for the benefit of all our stakeholders.”
The hospital, its skilled nursing facility, clinics and related services will remain open throughout the process. The organization has secured additional financing to provide patient care, support employees and make vendor payments, the release said.
The Chapter 11 petitions were filed in the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division.
The filings come less than a year after Oroville Hospital agreed to pay $10.25 million to resolve allegations it violated the False Claims Act and the Anti-Kickback Statute.
Editor’s note: This story was updated at 10:53 a.m. Central time on Dec. 9.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.