Mendocino Coast District Hospital to Declare Chapter 9 Bankruptcy

In a 3-2 vote, the board of the Mendocino Coast Health Care District said it would file for Chapter 9 bankruptcy protection, according to a Mendocino Beacon report.

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District officials, who oversee Mendocino Coast District Hospital, a 25-bed critical access hospital in Fort Bragg, Calif., said Chapter 9 bankruptcy will allow the district to restructure its debt. Chapter 9 bankruptcy specifically provides for the reorganization of municipalities.

MCDH CFO Wayne Allen said the hospital’s days cash on hand stands at roughly 2.3 days, meaning expenses could soon overtake revenue. At the hospital’s current pace, it could lose $2.5 million this fiscal year, according to the report.

The board plans to file for bankruptcy protection Nov. 15.

More Articles on Hospital Bankruptcy:

Colorado-Fayette Medical Center in Texas Files for Chapter 11 Bankruptcy

Shuttered Sheehan Health in New York Files for Chapter 11 Bankruptcy

Natchez Regional in Mississippi Emerges From Bankruptcy

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