One month after Adventist Health backed out of the deal, the bankrupt Madera Community Hospital has a new healthcare company coming in to lead the reopening process and ultimately acquire the hospital.
Sources with knowledge of the Madera Community Hospital Board of Trustees confirmed that the board voted to accept a proposal from American Advanced Management to serve as the management team to reopen the hospital.
The backstory: Madera Community Hospital closed its doors one year ago and declared bankruptcy due to rising operating costs over the past few years, which included high Medi-Cal reimbursement rates and pay for travel nurses, both of which were ultimately unsustainable.
- Adventist Health signed on with the hospital in July and organized a reopening plan to bring Madera County’s lone hospital back to life.
- But last month Adventist Health backed out of the deal because it was unable to find a fiscally viable solution to reopen and operate the hospital.
- In the intervening period, the hospital board has faced immense pressure from County officials – led by Supervisor Jordan Wamhoff – to reach a deal.
The big picture: Late Tuesday, a press statement from the two sides announced the management and acquisition deal.
- American Advanced Management is based out of Modesto and operates nine hospitals in California and one in Texas.
- The organization has a history of reopening hospitals that were in dire financial straits. In 2017 American Advanced Management reopened Colusa Regional Medical Center in Colusa County after acquiring it through bankruptcy
- American Advanced Management also saved Glenn Medical Center in Glenn County from being closed.
What they’re saying: “American Advanced Management has the vision, experience and resources to reopen our hospital and create a strong future for our community’s health care,” said Madera Hospital CEO Karen Paolinelli, who visited two of the company’s locations. “They have a track record of successfully reopening and sustaining closed hospitals in California, which uniquely qualifies them to move this forward. We’re excited about their leadership and partnership.”