After Roseville, Calif.-based Adventist Health reached an initial agreement to take over operations of shuttered Madera (Calif.) Community Hospital, Adventist laid out a series of financial conditions that must be met to take over the hospital formally.
The financial conditions, according to an Adventist letter of intent provided to Becker's:
- Madera obtains funds to meet all bankruptcy obligations and satisfy creditors.
- Adventist receives $55 million in funds for services, supplies, software, systems, staffing, training and maintenance costs associated with the first year post-reopening of the hospital.
- The health system receives $30 million to sustain hospital operations in its second year.
The funds can come from the California Distressed Hospital Loan Program or other sources, such as grants and loans.