Adventist Health is no longer going to reopen Madera Community Hospital, backing out of the deal several months after signing a non-binding letter of intent.
Adventist Health announced that it is backing out on Thursday.
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The backstory: Madera Community Hospital closed its doors nearly one year ago and went bankrupt as operating costs – including paying for travel nurses and Medi-Cal reimbursements – increased in recent years.
- In July, Adventist Health jumped in as the hospital’s savior, putting together a reopening plan that helped the hospital become eligible for state funding.
Driving the news: Madera Community Hospital’s future is once again murky due to its poor financial situation, which was the driving force behind Adventist Health’s decision to exit the deal.
- This comes despite the hospital receiving $2 million from a state loan program that lawmakers touted as a lifeline to hospitals in financially precarious positions.
What they’re saying: “Unfortunately, Adventist Health was unable to find a fiscally viable solution for the costly process of reopening and operating a closed facility, especially given the limited financial resources available and the current economic pressures facing rural and safety-net providers,” said Adventist Health in a statement.
