OROVILLE, Calif. — Oroville Hospital and its parent company, OroHealth, have filed for Chapter 11 bankruptcy to facilitate a sale aimed at securing its future. Hospital officials stated that this move is designed to preserve the hospital’s critical healthcare facilities for the Butte and surrounding counties.
The hospital stated in a press release that its operations will continue as usual during the process. In the statement, hospital officials also emphasized its commitment to patient care.
Oroville Hospital has been serving the community since 1962. The Chapter 11 petitions were filed in the U.S. Bankruptcy Court for the Eastern District of California in Sacramento. Judge Christopher M. Klein is overseeing the case.
The hospital is receiving legal and financial advice from several firms, including Fox Rothschild LLP, FTI Consulting, Inc., and Cain Brothers. The law firm Hooper, Lundy & Bookman, P.C. is advising on healthcare regulatory and transactional matters.
Below is the full statement following the announcement of Oroville Hospital filing for Chapter 11 bankruptcy:
“We believe this filing is an important step toward securing the hospital’s long-term future as a vital healthcare provider and employer in our community. The purpose of the filing is to facilitate a court-supervised transaction with a partner that has the resources and operating experience to invest in the hospital and maintain its mission for the benefit of all our stakeholders.
“It is important to emphasize that we will remain open and continue to operate during the Chapter 11 process. Patient care remains our top priority and will be unaffected. As part of this process, we have secured additional financing that will allow us to continue to provide patient care, support employees, pay vendors, and serve the community during the bankruptcy process.
“As part of our strategy for maintaining Oroville Hospital’s long-term viability, our board recently made the decision to pursue a transaction with a partner to ensure that we can continue serving residents of Oroville and the surrounding foothill and valley communities, as we have done successfully since 1962, for many years to come.
“We appreciate the continued support of our physicians, employees, patients, labor union partners, vendors, elected officials, community leaders, residents and other stakeholders as we work through this process.”
For more information about the filing, email OrovilleHospital@Epiqglobal.com or click here to visit this website.
Previous Reporting:
Oroville Hospital is actively seeking a partnership or sale to a larger healthcare organization due to ongoing financial difficulties, representatives announced Friday. The hospital is collaborating with Cain Brothers, a healthcare investment banking firm, to find a potential partner or buyer.
Oroville Hospital is facing financial challenges as it struggles to address a demand for payment from United Missouri Bank National Association, also known as UMB. The hospital was informed that it must immediately pay nearly $200 million to UMB.
Modern-Sundt has filed a lawsuit against Oroville Hospital for nearly $17 million over unpaid work on the hospital’s tower expansion. According to court documents filed by Modern-Sundt, the ongoing legal battle highlights significant delays and additional costs faced by the contractors.