It’s been 158 days since Colusa Regional Medical Center saw its last patient. A recent bankruptcy court decision may return the hospital to opening its doors.
“A sale agreement was approved by the judge with American Specialty as the buyer,” said Wayne Allen, former Interim CEO, and CRO of Colusa Regional Medical Center.
However, County Counsel Marcos Kropf stated in a press release Tuesday night that the decision isn’t final.
“The Court’s approval is not final and is partially conditioned on the County’s additional consent to a short‐term lease between American Specialty and the bankruptcy trustee while American Specialty works to obtain the transfer of the hospital’s currently suspended license,” stated Kropf, “The County will be carefully evaluating potential terms for the short‐term lease with the bankruptcy trustee and American Specialty.”
Kropf explained that the short-term lease is to enable American Specialty to begin any necessary work and to occupy the facility to obtain the license transfer.
“Under the current sale agreement, American Specialty would not be assigned the lease until escrow closes,” said Kropf. “for them to obtain their license, they would have to occupy the premises and meet current codes.”
According to Allen, the next step is for American Specialty to get the hospital’s license status current and make the transfer.
“They’ve got the legal approval from the bankruptcy court to take the next step, and it’s a big one too,” said Allen.
Allen commented that going through the licensing operation can be a daunting task.
“They have to get ready and show that they are equipped to run a hospital and get approved,” said Allen. “hopefully it goes smoothly, it takes some time… It doesn’t happen in a week or two.”
According to latest court documents the sales agreement with American Specialty is for $1.1 million. According to Kropf and Allen, there were no objections to the sale; however, Kropf added that there were some concerns with a few creditors and the current clinic lease, Adventist Health. “With their concerns, there were no objections to the sale agreement,” said Kropf.
The Court has ordered the parties to return to court with any proposed agreements on or before November 4, 2016. ■