Dozens of businesses, physicians and individuals, including Karen Paolinelli, Madera (Calif.) Community Hospital's chief executive, have filed claims requesting to be repaid through the hospital's bankruptcy process, The Fresno Bee reported Dec. 14.
Madera Community Hospital filed for Chapter 11 bankruptcy March 10. The hospital officially closed at midnight Dec. 30, 2022, 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.
In July, Madera and Roseville, Calif.-based Adventist Health entered a nonbinding letter of intent for Adventist to take over operations. However, Adventist announced in November that it would no longer pursue the management of Madera Community Hospital.
Also in November, creditors submitted their plan to liquidate the hospital in bankruptcy court, which, if approved, would launch the process of selling the hospital assets to repay creditors, according to the Bee.
Ms. Paolinelli, who has been involved in efforts to find a partner to reopen the hospital, is among those who filed a claim. She is requesting payment for $200,658 in unpaid vacation time and unpaid self-funded insurance benefits, the newspaper reported.
An attorney representing the hospital declined to comment to the Bee on Ms. Paolinelli's request but said it was "fairly common" for employees to file claims during bankruptcy proceedings.
Becker's has reached out to Ms. Paolinelli and will update this story if a comment is received.
By Feb. 13, the committee of unsecured creditors is scheduled to vote on a liquidation plan filed by creditors, according to the Bee.
Meanwhile, the hospital continues efforts to secure a reopening partner. The hospital has two suitors, Modesto-based American Advanced Management and Praise Healthcare, and continues to go through the bankruptcy process.
Read the full Bee report here.