Pacifica Hospital of the Valley in Sun Valley, Calif., sought Chapter 11 protection July 4, according to documents obtained by Becker’s.
The 231-bed acute care facility has provided care for more than three decades, according to its website. It has estimated assets between $50 million and $100 million, with estimated liabilities from $100 million to $500 million, the documents said.
Pacifica Hospital has approximately 697 employees, with approximately 538 represented by unions, according to a July 7 court document obtained by Becker’s. The hospital owes its employees an aggregate of approximately $1.49 million in unpaid wages, salaries, paid leave and other compensation. It also owes supplemental workers approximately $4.9 million in prepetition amounts.
The document asked the court for authority to pay the wages immediately.
Another July 7 court filing, also obtained by Becker’s, revealed the hospital had an operating account holding of just $1,222.48 as of July 4 with several unrestricted cash accounts totaling just over $240,000.
“[Pacifica Hospital of the Valley] lacks any meaningful cash reserves and requires immediate access to its cash receipts,” the document said. “Any delay in collection of those receipts that are available could jeopardize the debtor’s ability to conduct its business, which, in turn, could ultimately provide irreparable harm to the debtor’s patients. Such delays would threaten the debtor’s reorganization and could cause it to immediately cease operations.”
Becker’s has reached out to Pacifica Hospital of the Valley for comment and will update this story should more information become available.
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