California healthcare facility data files for individual bankruptcy

A 106-mattress medical center in Watsonville, Calif., and its dad or mum organization have filed for personal bankruptcy protection.

Watsonville (Calif.) Neighborhood Medical center and its mother or father business, Halsen Healthcare, filed for Chapter 11 bankruptcy Dec. 5. The medical center has between $10 million and $50 million in property and liabilities inside the identical array, in accordance to its individual bankruptcy petition signed by the hospital’s main restructuring officer. 

Paperwork filed in the circumstance depth the targets of the individual bankruptcy submitting, which includes keeping the healthcare facility open, conserving about 650 jobs and marketing the medical center to a consumer that can assistance the health care wants of the neighborhood.

Medical center leaders said in the individual bankruptcy documents that they have negotiated a tentative settlement with the Pajaro Valley Healthcare District Challenge, and the nonprofit group has agreed to act as the stalking horse purchaser of the clinic. The team is built up of the County of Santa Cruz, the Metropolis of Watsonville, Group Health Have confidence in of Pajaro Valley and Salud Para La Gente and was fashioned to examine the acquire of the clinic.

The hospital’s CEO announced in November that the facility would near if a consumer wasn’t secured by Jan. 28. He reported the healthcare facility is experiencing substantial monetary difficulties, which had been exacerbated by earnings losses during the COVID-19 pandemic. This year, the healthcare facility has missing about $32.5 million, in accordance to individual bankruptcy paperwork.

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