The hospital, which is owned by the Palm Drive Health Care District, faced closure earlier this year, and staff projected the facility would run out of money by the end of August. However, the hospital recently entered into a 10-year agreement with Modesto, Calif.-based American Advanced Management Group that calls for the hospital to remain open with fewer services.
Under the agreement, Sonoma West Medical Center will end short-term inpatient care and close its emergency room. The hospital will close its emergency room Sept. 16, according to its website.
Sonoma West Medical Center will transition to a long-term care hospital with an urgent care facility. Although it will take up to eight months for AAMG to obtain the documents to open the urgent care center, the hospital can transition to a long-term care facility under its current license, according to the Sonoma West Times & News.
More articles on healthcare finance:
12 hospitals with strong finances
California health system’s bankruptcy challenged by employee union
Oklahoma hospital on brink of closure gets taxpayer infusion to make payroll
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.