Adventist Health, UCSF team up for Madera Hospital bid

The joint bid comes in spite of a previous offer from American Advanced Management to take over the hospital.

Adventist Health is back in on an attempt to purchase and reopen Madera Community Hospital, which has been closed for over a year now. 

This time, though, Adventist Health is partnering with UC San Francisco and pulling out of a potential deal late last year. 


The backstory: Last July, Adventist Health put together a reopening plan and announced its intentions to take over operations of the hospital. 

  • But in November Adventist Health backed out, saying at the time that it could not find a fiscally viable solution for the bankrupt hospital. 

The big picture: Thursday, Adventist Health and UCSF announced in a joint press conference that they are putting a joint bid together to purchase the hospital. 

  • Under the joint deal, Madera Community Hospital would reopen its doors to serve the Madera community as it once did, as well as providing a teaching part of it for medical students. 

What we’re watching: Despite Adventist Health jumping back into action with UCSF, Madera Community Hospital already has a deal in place with Modesto based American Advanced Management that was agreed to in December. 

  • American Advanced Management has its deal up for approval in bankruptcy court on Feb. 13. 
  • If that deal is approved, then American Advanced Management will take over the hospital, not Adventist Health and UCSF. 

What they’re saying: “Adventist Health looked at the circumstances surrounding Madera and realized we just couldn’t do it on our own,” said Kerry Heinrich, President and CEO of Adventist Health. “In the conversations with UCSF, I’ve been so uplifted by the commitment to change the dynamic of health care in the Central Valley.”

  • In a statement Thursday, American Advanced Management said it has made substantial progress with many government agencies to close the deal on Feb. 13. 
  • “We are now days away from receiving bankruptcy court approval to manage, reopen and purchase the hospital,” American Advanced Management said. “We have the support of the official committee representing the Hospital’s creditors and conditional Attorney General approval, and our management applications have been submitted to the California Department of Public Health for final approval. We have received overwhelmingly positive feedback from the community physicians, and they have committed their support to this project.” 
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