Scripps Health has agreed to buy the inpatient hospice facility and assume the remaining patients and employees of a San Diego hospice organization that filed for Chapter 11 bankruptcy protection last week.
According to a Feb. 13 filing in U.S. Bankruptcy Court in San Diego, Scripps Health will pay $10.7 million for San Diego Hospice's 23-bed facility and will extend a debtor-in-possession loan of up to $5 million to help the hospice maintain operations pending the transition. The plans must be approved by the court.
Scripps Health, a four-hospital system based in San Diego, also last week acquired a small hospice company in order to get a state license to immediately begin assuming patients from the foundering San Diego Hospice. Scripps Health has been that organization's largest referral source.