California hospital may reopen under lease deal

Colusa County, Calif., supervisors have been asked to assign the lease of shuttered Colusa (Calif.) Regional Medical Center to Modesto, Calif.-based American Specialty Healthcare, according to the Appeal Democrat.

In a memo to county supervisors, Marco Kropf, county counsel, said the hospital's bankruptcy trustee has requested the county consent to the assignment of the lease.

Under the proposed deal, American Specialty would pay the county $24,000 annually in rent, and the lease would run for 30 years. American Specialty has also agreed to make capital improvements to the hospital and to maintain "sufficient beds to meet the needs of the community," according to Mr. Kropf's letter.

In a business plan submitted to county officials, American Specialty estimates Colusa Regional will need $3.6 million in building improvements and equipment upgrades during the first four months after reopening.

County supervisors will consider American Specialty's proposal Tuesday.

Colusa Regional closed April 22 and filed for Chapter 7 bankruptcy in June. Approximately 200 workers were affected by the closure.

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