Coalinga Regional Medical Center image via Wayne Allen
Written by The Business Journal Staff
Late last month, the United States Bankruptcy Court in Fresno approved the Coalinga Regional Medical Center’s Chapter 9 bankruptcy plan.
This brings the complicated bankruptcy filing to a legal resolution. The District remains intact and able to provide health care services to the people of Coalinga through its lease arrangement with Coalinga Medical Center.
The plan calls for the District to lease its health care facilities to Coalinga Medical Center with an option to purchase. Property tax revenues will be used to service bonded indebtedness. The budgets call for the District to be able to provide some health care services in the future, such as diabetes education, healthy living and hypertension prevention.
William Lewis, president of the Board of Directors, said that they were pleased with the outcome.
“We very much appreciate the support we have received from the community,” he said. “This has been a long and difficult road for us. But with this court approval, we are optimistic that the District will now be able to resume health care services to our community.”
Coalinga Regional Chief Financial Officer Sandra Earls adds that approval of the plan reflects the culmination of months of negotiations, led by bankruptcy counsel Riley Walter and district counsel Peter Zeitler with bond holders, unsecured creditors and other stakeholders.
“This plan provides the blueprint for us to meet our financial obligations, including payment of bond holders and unsecured creditors,” Earls said. “This overwhelming support from our creditors was incredible.”
Coalinga Medical Center aims to reopen the hospital facility by September.