Tulare (Calif.) Regional Medical Center, which filed for bankruptcy Sept. 30, is reportedly in talks with two health organizations to run the facility, placing the hospital in a position to break ties with its current management company early, according to the Visalia Times-Delta.
Lawyers on behalf of the hospital said TRMC has preliminary management agreements in place with Fresno, Calif.-based nonprofit Community Medical Centers and Santé Community Physicians, also in Fresno, according to court filings related to the hospital's bankruptcy case and request to find a new administrator.
Under the proposed arrangements, CMC would operate the hospital, while Santé Community Physicians would provide the medical staff for the hospital.
The financial terms of the agreements were not disclosed. However, hospital lawyers claim TRMC may save up to $9 million per year by terminating their current 15-year contract with Tulare-based HealthCare Conglomerate Associates 12 years early, according to the report.
The Tulare Local Healthcare District, which operates the 112-bed TRMC, unanimously voted to reject the district's contracts with HCCA Oct. 9.
Officials presented their plans for new management to a judge Thursday, who deferred his ruling. It is unclear when a ruling on the case will be issued.