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Oroville Hospital is suing its former CEO, Robert Wentz, alleging he had an undisclosed ownership interest in a property the hospital leased, paid expenses on, and spent millions improving. The hospital, currently in Chapter 11 bankruptcy, is asking a court to transfer ownership of the property to the hospital \u2014 and claims it overpaid more than $721,000 in rent for space it wasn’t using.<\/p>\n
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UPDATE (8\/10\/2026 @ 1:35 PM):\u00a0<\/strong>Action News Now reached out to Oroville Hospital for a statement. They told us,\u00a0\u201cThe hospital took this action to protect its interests. The matter is now before the court.\u201d<\/p>\n OROVILLE, Calif. –<\/strong> Oroville Hospital and its parent organization OroHealth Corporation filed a lawsuit against a limited liability company owned by their former CEO, alleging he used his position to profit from a property deal that should have belonged to the hospital.<\/p>\n According to the complaint filed in U.S. Bankruptcy Court, Robert J. Wentz served as CEO and a board member of both organizations when he formed Dove’s Landing, LLC in 2011. The lawsuit claims Wentz acquired a property at 2450 Oro Dam Boulevard in Oroville through Dove’s Landing, then leased it back to the hospital at inflated rates while the hospital spent more than $7 million renovating the abandoned Montgomery Ward building.<\/p>\n “The Lease Transactions were not true leases,” the complaint states. “In 2011, Dove’s Landing acquired the Property\u2014which at the time, consisted of an abandoned Montgomery Ward Department Store that had been out of use for over a decade\u2014solely so that Plaintiffs would invest millions of dollars in refurbishments and renovations.”<\/p>\n The hospital alleges Wentz controlled the boards of both organizations and misled trustees about the transaction. The lawsuit claims he presented the deal as the only viable option while concealing his 60% ownership stake in Dove’s Landing.<\/p>\n According to the complaint, Wentz told board members in 2011 that the hospital had limited funds and that direct ownership would create conflicts of interest. He circulated a legal memo about federal healthcare regulations to suggest the hospital was required to pay market rent even for an unimproved property.<\/p>\n “Mr. Wentz wanted to mislead the other trustees,” the complaint states. The lawsuit alleges he wanted them to believe “the Hospital needed to expand and that the Property would be the best location to do so” but that they were “compelled to vote against the Hospital acquiring title to the Property.” The hospital claims it paid rent matching Dove’s Landing’s mortgage costs while also covering all property taxes, insurance, maintenance and the $7 million in renovations.<\/p>\n The lawsuit alleges the hospital was overcharged for 5,000 square feet it never used, amounting to more than $721,000 in excess rent. A 2011 memorandum of understanding referenced in the lawsuit indicated Wentz’s entity would transfer 51% ownership of the property to the hospital after 20 years “as a gift.” The complaint argues this demonstrates the arrangement was always intended as financing rather than a lease. The hospital filed for Chapter 11 bankruptcy protection in December 2025. Wentz resigned from the boards in February 2026 and as CEO in April 2026.<\/p>\n The lawsuit seeks to have the property transferred to Oroville Hospital and to recover overcharges and damages. It names Dove’s Landing, Wentz, another Wentz-owned entity called Oroville Sports Club, and California Attorney General Rob Bonta as defendants. Bonta is named as a nominal defendant required by state law in nonprofit self-dealing cases.<\/p>\n The complaint includes 14 causes of action, including breach of fiduciary duty, fraudulent conveyance and requests for declaratory relief. It alleges Wentz “completely dominated and controlled” the hospital boards and that other trustees “felt their financial well-being was tied to their agreement and lock-step voting with Mr. Wentz.”<\/p>\n Oroville Hospital operates 133 general acute care beds and provides services at 31 clinics in Butte County and surrounding areas. The lawsuit states the hospital recorded more than 26,000 emergency room visits in fiscal year 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"
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