Surprise Valley Health Care District, which operates 26-bed Surprise Valley Hospital in Cedarville, Calif., filed for Chapter 9 bankruptcy Jan. 4.
In court documents, the district's board said without bankruptcy protection, the financial state of the organization "jeopardizes the health, safety, and/or well-being" of local residents.
The board authorized the healthcare district to partner with Denver, Colo.-based medical testing company CadiraMD. Under the agreement, CadiraMD will lend the healthcare district up to $1.5 million, subject to the achievement of certain milestones, including the sale of Surprise Valley Hospital.
In the bankruptcy petition, the district listed its assets as between $500,000 and $1 million and its liabilities as between $1 million and $10 million.
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