Oroville (Calif.) Hospital and its parent company, OroHealth Corp., filed an Aug. 4 lawsuit against the hospital’s former President and CEO Robert Wentz, alleging he held a majority stake in a company that owns the hospital’s leased medical clinic and caused the hospital to pay above-market rent.
“The hospital took this action to protect its interests,” a spokesperson for Oroville Hospital said in an Aug. 10 statement shared with Becker’s. “The matter is now before the court.”
Oroville Hospital and OroHealth each sought Chapter 11 bankruptcy protection in December 2025 to help secure a long-term future for the facility amid ongoing challenges. The hospital reached a late-July agreement with OroHealth Corp., its debtor-in-possession lender and master trustee, to amend its DIP loan documents and extend post-petition financing.
Mr. Wentz resigned from his roles on the board of trustees for OroHealth and Oroville Hospital in February 2026. He then stepped down as CEO of OroHealth and Oroville Hospital in April 2026 as part of a leadership transition that the hospital’s board of trustees approved. Scott Chapple, Oroville’s administrator and COO, succeeded Mr. Wentz.
The complaint, filed in the U.S. Bankruptcy Court for the Eastern District of California as part of the hospital’s bankruptcy and obtained by Becker’s, named Mr. Wentz, Dove’s Landing LLC, and Oroville Sports Club LLC, as defendants. The lawsuit alleges Mr. Wentz has a 60% membership interest in Dove’s Landing and held a majority interest in the sports club.
According to the lawsuit, Mr. Wentz formed Dove’s Landing in 2011 while serving as CEO and a trustee of OroHealth and Oroville Hospital. He then had the company acquire an abandoned department store building and lease the property back to the hospital as the medical clinic. Oroville Hospital began its occupancy of the property in January 2013 and spent approximately $7 million in improvements to the space.
“Plaintiffs further discovered post-petition that they had paid for 5,000 square feet that were not included in the renewal lease or used by plaintiffs, and the addition of this square footage resulted in approximately $721,329 in excess rent charges during the term of the renewal lease,” the lawsuit said.
The lawsuit alleges the rent under the renewal lease was approximately 7.8% above the property’s fair market value range.
The hospital has asked the court to declare Oroville Hospital the owner of the property, arguing the leases were effectively a “disguised financing” deal, and is seeking disgorgement of all property and profits, an accounting and punitive damages.
“Mr. Wentz now believes he can simply take the Property for himself, as his ‘retirement,'” the lawsuit said. “He is mistaken.”
Becker’s has reached out to Mr. Wentz for comment and will update this story should more information become available.
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.
