California hospital files for bankruptcy
A 106-bed hospital in Watsonville, Calif., And its parent company have filed for bankruptcy.
Watsonville, Calif., Community Hospital and its parent company, Halsen Healthcare, filed for Chapter 11 bankruptcy on December 5. The hospital has between $ 10 million and $ 50 million in assets and liabilities in the same range, according to its bankruptcy request signed by the hospital’s head of restructuring.
Documents filed in the case detail the goals of the bankruptcy filing, including keeping the hospital open, saving approximately 650 jobs and selling the hospital to a buyer able to meet the health needs of the community. .
Hospital officials said in bankruptcy documents that they had negotiated a tentative deal with the Pajaro Valley Healthcare District Project, and the nonprofit group agreed to act as a buyer of the horses. of harassment from the hospital. The group is made up of Santa Cruz County, the City of Watsonville, the Community Health Trust of Pajaro Valley and Salud Para La Gente and was formed to explore the purchase of the hospital.
The hospital’s CEO announced in November that the facility would close if a buyer was not selected by January 28. He said the hospital faced significant financial challenges, which were exacerbated by lost income during the COVID-19 pandemic. This year, the hospital lost about $ 32.5 million, according to bankruptcy documents.