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Calif. hospital CEO seeks Adventist, CommonSpirit, Sutter as possible transaction partners

Fort Bragg, Calif.-based Mendocino Coast District Hospital's board of directors will seek a potential lease or sale, the hospital's interim CEO said April 11, according to the Fort Bragg Advocate-News.

Wayne Allen, interim CEO of MCDH, issued a request for proposal seeking partners interested in inking a deal with the hospital. RFPs were sent to Roseville, Calif.-based Adventist Health; Chicago-based CommonSpirit Health; Sutter Health in Sacramento, Calif.; St. Joseph Health in Irvine, Calif.; and Modesto, Calif.-based American Advanced Management Group.

"After careful thought and deliberation, the Board of Directors of MCDH ... has determined that the timing is appropriate to seek options regarding a potential lease or sale," according to the RFP, obtained by the Fort Bragg Advocate-News. "The Board is committed to finding the right lease partner or buyer to ensure that exceptional local healthcare continues ... to be delivered on the Mendocino Coast and the surrounding area."

The hospital has faced financial challenges in the past. In 2012, it filed for Chapter 9 bankruptcy protection. More recently, the hospital's leadership and board have come under scrutiny. MCDH's board of directors voted to terminate the contract of hospital CEO Bob Edwards Jan. 24. During Mr. Edwards' tenure, the hospital saw a $2.1 million surplus in 2016, but experienced multimillion-dollar losses in 2017 and 2018.

More articles on healthcare industry transactions:
Chicago hospital pitches $22.5M deal to expand footprint
Advocate Aurora Health acquires Wisconsin hospital
Quorum divests Texas hospital

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