In Sept. 2009, DRMC filed for protection under Chapter 11 of the U.S. Bankruptcy Code, citing financial systems breakdowns and poor contracts as its reasons for filing, and in February, DCHS began exclusive negotiations regarding the potential acquisition of DRMC, a 199-bed, not-for-profit hospital serving Southeast Los Angeles County.
Daughters of Charity Health System President and CEO Robert Issai expressed regret for the decision, calling DRMC a “diamond-in-the-rough” and “wishing Downey Regional Medical Center success in finding a partner who will ensure its viability in this increasingly complex healthcare market,” according to the release.
DRMC plans to continue its reorganization process and hopes to emerge from bankruptcy this summer, according to the release.
“We are disappointed that DCHS chose to not move forward, but we understand their priorities are with their existing system hospitals,” DRMC COO Rob Fuller said in the release. “We are fortunate to have several other interested parties, and we have already reached out to them to initiate affiliation discussions. Our overall plan remains the same: affiliate with a system, gain their support for our creditors, and emerge from bankruptcy in the early summer.”
Read the release on the ended Daughters of Charity and Downey Regional affiliation talks.
