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The Madera County Board of Supervisors approved $500,000 in assistance to Madera Community Hospital on Tuesday.

published on August 1, 2023 - 12:41 PM
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The Madera County Board of Supervisors has extended a four-week lifeline to the community’s hospital, sparking optimism the shuttered facility can reopen.

Supervisors approved $500,000 in assistance to Madera Community Hospital, coming in weekly payments of $125,000 to keep the hospital in operating shape as officials await even more state money meant for distressed hospitals.

The board action is part of a reopening plan that has become even more realistic after Adventist Health emerged last week as a possible suitor to operate the hospital that has been closed since December.

The county funding is contingent on a signed letter of intent with a potential partner or buyer, which came with last week’s announcement of a potential management agreement with Adventist. The final condition is that the hospital be kept in operating condition through Aug. 30 without the threat of liquidation.

The Madera Community Hospital board filed for Chapter 11 bankruptcy protection in March. A federal bankruptcy judge must also approve the letter of intent with Adventist.

Hospital officials on hand for Tuesday morning’s vote expressed optimism, with CEO Karen Paolinelli saying it is a pivotal point.

“This is a very exciting opportunity for the future,” Paolinelli said.

Driving home just how important today’s decision was, Supervisor Leticia Gonzalez said she returned from maternity leave to cast her vote. She gave birth to a child eight days ago.

Supervisors were careful to manage expectations around the decision, telling the public many other pieces must fall in line. Most importantly, the hospital must secure a loan from the state’s newly created Distressed Hospital Loan Program. Officials applied for a reported $80 million loan.

Approving the assistance along with his fellow board members, Supervisor Jordan Wamhoff said it inspires hope for a reopening.

“The hospital is still in the ocean,” he said. “This is a temporary life raft.”


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