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Madera Community Hospital Closing Down, Files Chapter 11

Analysis  |  By Amanda Schiavo  
   January 04, 2023

"It is with much sadness and disappointment that the hospital will now face bankruptcy and closure," the organization says.

Madera Community Hospital—a Madera, California-based healthcare provider with over $200 million in total patient revenue and 106 staffed beds—has filed Chapter 11 bankruptcy and will be permanently closing its doors on January 10, 2023.

"The financial strain the pandemic has placed on Madera Community Hospital has resulted in a large loss," the organization said in a press release. "Hospital leadership has reached out to other possible partners as well as working with our legislators in an effort to find funding for the hospital without success. It is with much sadness and disappointment that the hospital will now face bankruptcy and closure."

Madera Community Hospital had previously entered into an agreement with Trinity Health Corporation, whereby Trinity would have acquired the struggling hospital. Trinity ultimately decided not to go ahead with the partnership.

"It disappoints me greatly that Trinity Health decided to walk away from its affiliation agreement with Madera Community Hospital," Congressman Jim Costa (CA-16) said in a statement published after the deal was canceled. "For more than 18 months we have worked with Madera Hospital and its Board of Directors, the California Attorney General, and state and local leaders to help maintain access to Madera Hospital and the full services that only this acute hospital provides in Madera County. I believe the Attorney General fairly assessed the application and required reasonable conditions to protect the community. Unfortunately, these conditions did not meet the needs that Trinity Health Care Systems required."

Madera Community Hospital filed bankruptcy on January 3, 2023, at that time services in the ER, OB ward, as well as outpatient and surgery closed. All patients remaining at the hospital on the closing day will be transferred to other hospitals by January 17, 2023.

Amanda Schiavo is the Finance Editor for HealthLeaders.

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