Despite 11th hour bid, judge OKs reopening plan for Madera Community Hospital

An eleventh hour joint bid for reopening by Adventist Health and UCSF was set aside as the deal between American Advanced Management and Madera Community Hospital moves forward.

American Advanced Management’s plan to reopen Madera Community Hospital was approved by Federal Judge Rene Lastreto on Tuesday. 

The decision comes just days after Adventist Health and University of California San Francisco put together a joint proposal to reopen the hospital. 


The big picture: According to a report from KVPR, Madera County attorneys lobbied the judge to postpone the ruling in order to have enough time to review the bid from Adventist Health and UCSF. 

  • County attorneys argued in court filing that American Advanced Management, which agreed to a deal with the hospital last year to take over operations, did not allow the hospital to maximize the value of its estate. 
  • American Advanced Management said in a filing that it had received approval from the property agencies, submitted a reopening plan to qualify for a state loan and put together a management and an administrative team to prepare for a rapid reopening. 
  • Lastreto ruled that there was no evidence to suggest that American Advanced Management will not be a good steward for healthcare for Madera County, giving the company the green light to reopen the hospital, which it says it may do by July. 

What they’re saying: Sen. Anna Caballero (D–Merced, Asm. Esmeralda Soria (D–Fresno) and Asm. Joaquin Arambula (D–Fresno) lamented the judge’s decision to move ahead with American Advanced Management and not give Adventist Health and UCSF consideration. 

  • “The federal judge’s decision today regarding Madera Community Hospital’s bankruptcy proceedings is disappointing. We hoped that the court would have granted UCSF, Adventist Health, and Madera County the opportunity to move forward and provide a full presentation of their joint venture to purchase and reopen Madera Community Hospital – to show what it could mean immediately for the residents and the long-term viability of this hospital for the region,” the lawmakers said in a statement. “In our view, it would have shown their commitment to reopen Madera Community Hospital quickly.” 
  • They noted that the California Department of Health Care and Information, the California Department of public Health and the Office of the Attorney General all still need to give their stamp of approval for the reopening plan. 
  • “We believe the UCSF-Adventist Health-Madera County plan would ensure the access to quality health care that the residents so desperately need, and that this plan would bring stability to the lives of these people, many of whom come from disadvantaged and rural communities,” they said. “We also believe this plan brings critical advantages – UCSF would attract and train a medical workforce vitally needed in our region, while the partnership with Adventist Health and Madera County would quickly rebuild community trust in a health care system that will serve them for decades to come.”
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