California medical center documents for bankruptcy

A 106-bed medical center in Watsonville, Calif., and its guardian organization have submitted for personal bankruptcy security.

Watsonville (Calif.) Local community Medical center and its mum or dad business, Halsen Healthcare, submitted for Chapter 11 bankruptcy Dec. 5. The healthcare facility has amongst $10 million and $50 million in assets and liabilities within the identical array, according to its personal bankruptcy petition signed by the hospital’s main restructuring officer. 

Files filed in the situation element the aims of the individual bankruptcy submitting, which includes holding the healthcare facility open, conserving about 650 jobs and offering the hospital to a buyer that can guidance the health care needs of the group.

Medical center leaders said in the bankruptcy paperwork that they have negotiated a tentative arrangement with the Pajaro Valley Healthcare District Venture, and the nonprofit group has agreed to act as the stalking horse purchaser of the hospital. The team is manufactured up of the County of Santa Cruz, the City of Watsonville, Community Health Have confidence in of Pajaro Valley and Salud Para La Gente and was formed to take a look at the purchase of the medical center.

The hospital’s CEO introduced in November that the facility would near if a buyer wasn’t secured by Jan. 28. He stated the hospital is facing significant fiscal difficulties, which were exacerbated by profits losses for the duration of the COVID-19 pandemic. This yr, the clinic has dropped about $32.5 million, according to bankruptcy documents.