Brea (Calif.) Community Hospital was spared immediate closure and liquidation after receiving a last-minute loan of $500,000 from one of its potential buyers. The emergency funding, provided by Prime Healthcare Systems, Riverside, Calif., allowed the hospital to meet a payroll of about $360,000 and is expected to keep the 162-bed facility open for at least two more weeks. U.S. Bankruptcy Judge John Ryan approved the cash infusion one day after seizing control of the hospital from its owner, Brea Community Healthcare Corp., which for months had been criticized for a decline in the quality of patient care. The hospital was $13 million in debt and had less than $10,000 in the bank as of Jan. 28, when it filed for Chapter 11 bankruptcy protection. Prime Healthcare, which owns two other California hospitals, is expected to compete with at least one other bidder, 30-physician Spectrum Medical Center Partners, to buy Brea Community. -- by Laura B. Benko
Closure of Calif. hospital averted by cash infusion
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.