Oroville (Calif.) Hospital said Oct. 19 its board has voted to withdraw an application for an internal medicine residency program as it “navigates the Chapter 11 process.”
Oroville Hospital filed for Chapter 11 bankruptcy protection in December, less than a year after it paid $10.25 million to resolve allegations it violated the False Claims Act and the Anti-Kickback Statute. The 211-bed hospital is seeking a restructuring or sale.
The hospital’s board determined the proposed internal medicine residency program “would divert resources and funding from the hospital’s core programs and services” during the bankruptcy process, according to an Oct. 19 statement.
The patient care ombudsman overseeing the bankruptcy case said the closure of the hospital, which also runs a 126-bed skilled nursing facility and 31 clinics, would force patients to seek care at alternative facilities. The closest hospital is approximately one hour away.
In August, Oroville Hospital filed a lawsuit against its former president and CEO, Robert Wentz, who retired from the organization in March. The lawsuit alleges that Mr. Wentz held a majority stake in a company that owns the hospital’s leased medical clinic and caused the hospital to pay approximately $721,329 in excess rent.
Oroville Hospital also announced internal medicine physicians and hospitalists Linda Lay, DO, and Christopher Tonthat, DO, will serve as co-chief medical officers. They stepped into the new roles Oct. 2.
Dr. Lay and Dr. Tonthat will share responsibilities previously held by Matthew Fine, MD, chief medical officer and director of patient safety; Meghan Shorter, MD, associate director of patient safety; and Mark Heinrich, DO, chief medical officer of outpatient clinics.
“We extend our sincere appreciation to Drs. Fine, Heinrich, and Shorter for their hard work, dedication, and invaluable contributions to the hospital, and we thank them for their commitment to advancing patient care and supporting our medical staff and community,” the hospital said. Dr. Shorter will continue serving as an emergency medicine physician.
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