Palm Drive Hospital Officially Shuts Down

Palm Drive Hospital, a financially troubled facility in Sebastopol, Calif., closed its doors Monday, according to a Press Democrat report.

Physicians and other supporters had proposed plans to keep the public-owned Palm Drive open, but an agreement was never reached. Hospital officials told The Press Democrat they still plan on working to reach a deal with the district and California Department of Public Health during the coming weeks.

In April, Palm Drive filed for Chapter 9 bankruptcy — the second time since 2007 the hospital had to do so. Palm Drive was licensed for 37 beds but was only staffed for 12 in its final months. Since last July, the rural hospital has lost more than $1 million due to large declines in inpatient admissions, reductions to Medicare and Medicaid payments and competition from large health systems with a presence in the nearby Santa Rosa, Calif., community.

"It's a very sad day. This is a wonderful hospital," Palm Drive CEO Thomas Harlan said in the report. "It's the last thing in the world I ever anticipated in my career."

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Hospital of Central Connecticut Aims to End Inpatient Services at South Campus

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