Fremont Bankruptcy Attorney Discusses Bankrupt Doctors Medical Center Is Saved—For Now—With $20 Million Dollar Bailout Plan
Fremont Bankruptcy Attorney Discusses Bankrupt Doctors Medical Center Is Saved—For Now—With $20 Million Dollar Bailout Plan
In San Pablo, California, Doctors Medical Center has been saved by a $20 million bailout plan that was approved by the California Medical Assistance Commission board last week. Under the details of the financial plan, the hospital, which had filed for bankruptcy, will receive a cash infusion this month and stay open for the near future. The money will be funneled in stages through the state to the West Contra Costa Healthcare District, which owns the hospital. Contra Costa County plans on later getting its money back through the district’s property tax revenue.
The county plans to later get its money back through the district's property tax revenue. The county and healthcare district will work together to set a contract that will delineate management responsibilities for a joint board.
Operating at a $1 million/month loss, the hospital has been forced to cut back on services, reduce pay, and lay off 300 employees. Under the new plan, the hospital is expected to start making a profit by mid-2007.
Doctors Medical Center and the West Contra County Healthcare District had filed for Chapter 9 Bankruptcy at the US Bankruptcy Court in Oakland in October 1, citing $50-$100 million in debts as well as assets.
