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Home News Modesto healthcare group bid to acquire bankrupt hospital

Modesto healthcare group bid to acquire bankrupt hospital

With Colusa County residents questioning the fate of their healthcare facility, a glimmer of hope is on the horizon.

Owners of Central Valley Specialty Hospital in Modesto, known as American Specialty Healthcare, Inc., filed a motion to approve its sale agreement with the now shuttered and bankrupt Colusa Regional Medical Center (CRMC).

The hospital was forced to close April 22, 2016, after facing financial troubles.

Court Documents filed, Friday, July 1, 2016, American Specialty Healthcare, Inc., asked the Eastern District Bankruptcy Court to shorten the time to hear its motion to approve the sale agreement. The motion is set to be heard on Tuesday, July 5, 2016. If approved, the Bankruptcy Court will hear the motion during the week of July 11 – 15, 2016.

The appointed bankruptcy trustee for CRMC agreed to sell property available to CRMC’s estate in the amount of $1-million to American Specialty Healthcare, Inc. The list of property includes a lease dated July 24, 2004, with the County of Colusa for the CRMC Campus; a commercial building at 199 E. Webster Street known as the Colusa Hospital Building; a lease dated May 1, 2007, with the Lilla J. Johnson Trust for the Arbuckle Medical Office; the real property commonly as the Williams Family Health Center; a sublease dated, April 22, 2016, of the Arbuckle Lease premises with Adventist Health Clearlake Hospital; as well as a space and equipment leases for the Williams Family Health Center, and the Colusa Health Clinic. Additionally, the purchases are to include CRMC’s Acute Care Hospital License (including skilled nursing, clinic, outpatient procedures, home health, and hospice) issued by the California Department of Public Health.

“This is the first offer to come in,” said Colusa Regional Medical Center’s CEO, Wayne Allen, “There could be others, or there could be none.”

Allen commented that the bid would be subject to overbidding by other interested buyers during the bankruptcy process.

Bankruptcy Court documents provide that the sale is conditional on the County of Colusa’s consent to assigning the CRMC Campus lease, or providing an option for the buyer to purchase the underlying land. Should the buyer purchase the underlying land, the estate will receive an additional $100,000 payable from that escrow.

“This offer takes coordination with the county,” Allen said, “the County is a critical player in this measure.”

The Williams Family Health Center will be subject to the secured claim of Tri-Counties Bank. The proposed sale would be free and clear of a lien held by the United States Department of Agriculture (USDA) against the CRMC Campus Lease securing in part an approximate $2.75 million claim, as well as a lien held by the Rural Community Assistance Corporation (RCAC) against the Colusa Hospital Building securing an approximate $500,000 claim. The Bankruptcy Trustee anticipates that both the USDA and the RCAC will consent to what will likely be a short sale of their claimed collateral.

Bankruptcy documents also state that the proposed sale would require the buyer to assume the expense and management responsibility for the debtor’s patient records.

“Things are starting to move along,” said Allen, “we are not at a point where we will start to see things happen.”

About Central Valley Specialty Hospital

Central Valley Specialty Hospital provides these services through a team of Board Certified Physicians, critically trained Registered Nurses, Respiratory Therapists, Wound Care Nurses, Physical and Occupational Therapists, Speech Therapists, Psychologists, Psychiatrists, Dietitians, Case Managers, and Social Workers who all focused on individualized goals for each patient’s recovery, allowing the patient to regain their independence and reach their optimum level of health. Visit online http://centralvalleyspecialty.org/

A representative from Central Valley Specialty Hospital or American Specialty Healthcare, Inc. were not available for comment at the time of press. ■

Lloyd Green Jr, Editor
Lloyd Green Jr, Editorhttps://williamspioneer.com
Lloyd Green Jr. is the Owner and Publisher of the Williams Pioneer Review. He is dedicated in publishing the news and informing the community of Colusa County. Lloyd has been with the publication since 2008, and purchased the business in 2010. Under his ownership the newspaper has grown significantly in subscriptions, publishes weekly, and obtained the title of Newspaper of General Circulation by the Superior Court of Colusa County in Sept. 2017. Lloyd is also the director of advertising, classified manager, legal notice clerk, and circulation manager. To contact Lloyd, email him at lloyd@colusacountynews.net or call (530) 458-4141 ext. 100.

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