Judge to decide if Colusa hospital can reopen under new management

A federal bankruptcy court judge will decide if San Diego-based American Specialty Healthcare will be able to take control of the lease to reopen Colusa (Calif.) Regional Medical Center, which shuttered its doors in June, according to the Appeal-Democrat.

According to a bankruptcy trustee responsible for the medical center, a judge will review the medical center's motion to allow ASH to take control of the lease on Sept. 27 and will either approve, deny or continue the motion for further discussion.

The medical center entered into a sale agreement with ASH in July for $1.1 million to take over various assets belonging to the medical center included in the estate.

Roseville, Calif.-based Adventist Health was responsible for the former lease. In a court filing, the company said it reserves the right to demand adequate assurance of future performance, to the extent that the successful purchaser be "anyone other than American Specialty," according to the article.

Though American Specialty is the only entity to show interest in the property, county officials said any other interested parties may attend the court's hearing to bid for the medical center, according to the article.

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