New Madera hospital operator faces lawsuit from community group

Part of the lawsuit centers on the hospital’s lack of a labor and delivery room.

Community advocacy group Madera Coalition for Community Justice has filed a lawsuit to block American Advanced Medical’s takeover of Madera Community Hospital. 

The group filed the lawsuit on Tuesday. 


The backstory: Last month a federal judge approved a reopening plan for Madera Community Hospital under American Advanced Management, which is based out of Modesto. 

  • That came despite a last-minute push from Adventist Health and UCSF to launch a joint bid for the hospital, which was ultimately denied since American Advanced Management had previously agreed to a deal with the hospital’s board. 

Driving the news: Madera Coalition for Community Justice claims American Advanced Management lacks the track record and ability to successfully reopen the hospital in a timely manner.

  • The coalition argues that the creditors’ liquidation plan is not proposed in good faith and does not commit to restoring health services to Madera’s residents. 
  • It also argues that American Advanced Managemnt’s reopening plan does not address the community’s health needs, including the absence of a labor and delivery room.
  • The coalition calls on the California Attorney General Rob Bonta to impose specific conditions on American Advanced Managment’s acquisition of the hospital to address the gaps in services, including the lack of a labor and delivery room. 

Go deeper: Madera Community Hospital averaged between 700 to 800 births every year before going bankrupt over a year ago, according to the lawsuit. 

  • American Advanced Management operates eight hospitals in California, yet none of them have a labor and delivery room, according to the lawsuit. 
  • The lawsuit alleges that American Advanced Management would commit to “no more than a stripped-down facility” only offering few of the essential services needed for the region, also calling it a “bait and switch scheme.” 

The other side: American Advanced Management Chief Strategy Officer Matthew Beehler told Fresnoland that Adventist Health did not have a labor and delivery room either in its plan and is in the process of closing those departments in Tulare and Simi Valley. 

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