Outlines of the Madera Community Hospital sign being covered by a tarp at the Emergency Room entrance of the hospital on Jan. 2, 2023. Photo by Larry Valenzuela, CalMatters/CatchLight Local

UCSF Health and Adventist Health are partnering to create a plan to reopen Madera Community Hospital. Officials with both systems shared their proposal to enter the bidding process on Thursday. 

Madera Community Hospital, however, is well into the process of partnering with American Advanced Management, a Modesto-based health management company — this after Adventist abandoned a previous bid to reopen the hospital last year.

President and CEO of UCSF Health Suresh Gunasekaransaid said the bid and plans they will share with the community will demonstrate how the partnership will bring the strengths of community hospital operator Adventist Health supplemented by the academic capabilities of UCSF Health.

“We are light on details, but we can tell you that we’re committed to not only reopening the facility but ensuring that these facilities are both clinically credible and financially sustainable into the future,” said Gunasekaransaid. 

Officials from UCSF and Adventist said they were keeping details quiet given the nature of the bidding process in bankruptcy court and did not disclose what they bring to the table. 

“The Madera community deserves sustainable access to quality care,” said Kerry L. Heinrich, President and CEO of Adventist Health. “I want to commend our counterparts at UCSF and what we can do together. Last October, Adventist Health looked at the circumstances and realized we couldn’t do it on our own. Our conversations with UCSF have uplifted me, and I want to put together something remarkable to reestablish faith in this community. As California’s largest rural healthcare provider with vast metropolitan experience, we look forward to a partnership that creates a much-needed safety net in Madera County.”

American Advanced Management released a statement explaining they were days away from receiving court approval to manage, reopen, and purchase the shuttered hospital.

“When our transaction is approved by the bankruptcy court on February 13, and our management agreement becomes effective, we will immediately begin the process of reopening the hospital, a process that will take four to six months. Leveraging our experience opening multiple closed acute care hospitals in California over the past decade will ensure this hospital is opened as quickly and efficiently as possible,” the statement said. 

Last year, Adventist Health signed a non-binding letter of intent to manage the hospital. The deal fell through last fall after Adventist Health announced that reopening the hospital would be too costly with the limited financial resources available at the time.

“Adventist Health looked at the circumstances surrounding Madera and realized we just couldn’t do it on our own,” said Heinrich. “We want this to be a quality institution and serve all people of Madera and the surrounding communities.”

The key catalysts that brought the three organizations together were the legislative support for the state’s Distressed Hospital Loan Program. UCSF Health and Adventist Health had separately explored ways to help secure Madera Community Hospital’s viability, but neither independently saw a financially sustainable operating strategy, according to a news release.

Two lawmakers responsible for $50 million lifeline from the state — Assemblymember Esmeralda Soria and Sen. Anna Caballero, appeared at a virtual news conference Thursday to lend their support for the latest proposal.

“The proposed partnership among Madera County, UCSF Health, and Adventist Health to acquire and reopen Madera Community Hospital represents a unique opportunity to deliver high-quality patient care to our community,” said Assemblywoman Esmeralda Soria, California Assembly District 27. “I am excited about this collaboration and believe it promotes our shared goal of investing in health equity for our rural communities. I fully support the partnership and the potential for it to reduce health disparities, promote diversity in future generations of healthcare workers, and more closely connect UC’s public service mission to areas most underrepresented across the state.”

The bankruptcy and closure of Madera Community Hospital left 160,000 people in the county without critical hospital services. This forced lawmakers to allocate $300 million in loans for it and other troubled hospitals. 

The state began committing the funds and designated around $57 million for Madera alone. That money is currently still in the state’s possession and will not become available to the Madera Community until a purchase deal or partnership is decided.