Community Regional Anesthesia Medical Group provides anesthesia services to Community Medical Centers at its three major hospitals: Clovis Community Medical Center, Community Regional Medical Center and Fresno Heart and Surgical Hospital. Photo by Matías Ramos via unsplash.com

Community Regional Anesthesia Medical Group is seeking Chapter 11 protection, which allows for reorganizing the business and paying back creditors – in this case, Community Medical Centers. It filed a Chapter 11 Petition with the United States Bankruptcy Court in Fresno yesterday.

Community Regional Anesthesia Medical Group provides anesthesia services to Community Medical Centers at its three major hospitals: Clovis Community Medical Center, Community Regional Medical Center and Fresno Heart and Surgical Hospital. 

The corporation has served the area for over 20 years and its estimated assets are between $1 million and $10 million, according to court filings. It owes Community Medical Centers $5.1 million and owes Fresno First Bank over $53,000 on behalf of a Paycheck Protection Program loan.

“For over 20 years [Community Regional Anesthesia] took great pride in providing excellent services to Community Medical Center and its facilities. It is very disappointing that [Community Regional Anesthesia] has gotten caught up in the political battle raging in Fresno, and that [Community Medical Center] elected to allow the contract to lapse,” said Carolyn Larsen, executive director of Community Regional Anesthesia Medical Group, Inc.

Community Medical Centers said Community Regional Anesthesia Medical Group did not respond to a request for a proposal.

“In line with common, prudent business practices, and in advance of the expiration of the CRAMG agreement, Community requested bids from interested anesthesia service providers. Unfortunately, CRAMG did not provide a response to our request for a proposal.  However, Community will continue to provide the same high-quality services from highly skilled anesthesia providers as we always have,” said Michelle Von Tersch, senior vice president of communications and legislative affairs for Community Health System.

Community Regional Anesthesia Medical Group anticipated that it would renew a contract with Community Medical Centers before it allowed the agreement to lapse.

“As [Community Regional Anesthesia]’s contract was exclusive to [Community Medical Center], and due to large legal fees spent in defending against a meritless wage and hour suit by two anesthesia nurses, [Community Regional Anesthesia] has filed Chapter 11 and will soon file its Chapter 11 Plan,” said Larsen.

The Honorable Judge Rene Lastreto II is designated as the presiding judge and Community Regional Anesthesia Medical Group is represented by Riley Walter, insolvency counsel. Mandy Jeffcoach and Ryan Eddings represent the group as litigation counsel. 

Through a business agreement between Community Regional Anesthesia and Community Medical Centers, Community Regional Anesthesia contracts with medical providers who administer services to patients. Larsen said because of this, there should be no disruption in providing anesthesia services. 

Community Medical Centers is in the process of contracting with a newly formed group that will provide the same anesthesiology services, Larsen believes.

Community Regional Anesthesia Medical Group will continue working  with Community Medical Centers until the contract lapses on Aug. 13. The anesthesiologists are independent contractors with the medical group, and many plan to continue providing care.

“[Community Regional Anesthesia] will proceed to liquidate its assets and distribute them to its creditors, the largest of which will be [Community Medical Centers],” Larsen said.