Two hospitals have filed for bankruptcy so far in 2023, and both are located in California.
Madera (Calif.) Community Hospital filed for Chapter 11 bankruptcy March 10. Madera Community officially closed at midnight Dec. 30, after Livonia, Mich.-based Trinity Health's plan to buy the hospital fell through. Trinity already owns and operates Saint Agnes Medical Center in Fresno, Calif.
Madera Community leaders had hoped to avoid bankruptcy and explored a number of options, including looking for another organization to take over operations. However, without a potential buyer coming forward, the hospital moved ahead with the bankruptcy filing.
Montebello, Calif.-based Beverly Hospital filed for Chapter 11 bankruptcy April 19 as it hoped to pursue a buyer and avoid closure.
The hospital had secured $13 million in financing to keep operating as it searched for a buyer. Hospital officials said rising costs outpacing government reimbursement rates were to blame for the situation.
Beverly had unsuccessfully attempted to merge with three systems. Hospital officials blamed the failed mergers on the review process by the California attorney general.
A Kaufman Hall report released April 11 found that 20 percent of California hospitals are at risk of closure. In 2022, total expenses for California hospitals were $23.4 billion higher than prepandemic levels and outpaced increases in revenue.