California hospital projected to run out of money by Aug. 31

Sebastopol, Calif.-based Sonoma West Medical Center is facing a financial crisis, and staff project the hospital will run out of money by the end of August, according to Sonoma West Times & News.

The hospital, which is owned by the Palm Drive Health Care District, faced closure earlier this year, but officials have taken steps in recent months to keep the facility open, including launching a fundraising campaign and pursuing a management agreement with Modesto, Calif.-based American Advanced Management Group.

The Palm Drive Health Care District board recently voted to continue negotiations with AAMG, but no contract has been approved. At the beginning of the board's meeting Aug. 14, PDHCD Executive Director Alanna Brogan said Sonoma West Medical Center is on its last payroll period. The hospital is losing up to $800,000 a month, according to the report.

Under the proposal from AAMG, the hospital would end short-term inpatient care and close its emergency room. The facility would transition to a long-term acute care hospital with an urgent care facility.

The PDHCD board is expected to negotiate a final contract with AAMG by Aug. 17, according to the report.

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