Adventist Health inks deal to reopen shuttered Madera hospital

After closing at the start of the year, Madera Community Hospital has found an operator to reopen the key rural hospital.

Adventist Health and Madera Community Hospital have agreed to start the process of reopening the Madera Community Hospital, which closed in January amid financial collapse.

This move comes after the hospitals signed a non-binding letter of intent.


Driving the news: The reopening plan was put forth together with conditions by state and local governments that will enable rescue dollars to be released to reopen the hospital.

With the letter of intent in-hand, Madera Community Hospital leadership is now able to apply for a loan from California’s Distressed Hospital Loan Program to achieve a sustainable planned reopening.

The deal with Madera Community Hospital comes just in time, as bankruptcy courts had been pushing for a liquidation of the hospital’s assets to pay off debts. The hospital has paid Trinity Health, operator of Fresno’s St. Agnes Medical Center, its biggest creditor, $8 million of the $15 million loan it took.

State lawmakers are optimistic that a $5 million grant approved just as the hospital shuttered may be available to aid reopening.

Madera County Supervisors agreed to provide the hospital $500,000 for its reopening plan once a formal letter of intent was signed.

A familiar role for Adventist: In June, Adventist Health agreed to purchase the financially ailing Bakersfield Heart Hospital, bringing its total operations to four Kern County hospitals.

  • The health system also purchased Tulare Regional Medical Center after the public hospital district’s bankruptcy following a long run of mismanagement by Healthcare Conglomerate Associates and Dr. Benny Benzeevi. The downfall that precipitated the bankruptcy has resulted in Tulare County’s largest white collar prosecution against HCCA affiliates.
  • Adventist Health has also acquired the Reedley Hospital in 2011.

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