Will bankrupt Madera hospital reopen? Why some are optimistic, despite challenges ahead

Bankrupt Madera Community Hospital has identified a new partner and a path toward reopening, but low-income Madera County residents seeking medical care could be relying on area health clinics or emergency departments in neighboring counties for the better part of a year.

Adventist Health confirmed Friday that it plans to take over management of Madera County’s only hospital, potentially saving it from liquidation and pledging to provide a “sustainable future for healthcare” in the county. Adventist, a faith-based, nonprofit health system operating in California, Oregon and Hawaii, already operates a number of hospitals and clinics in the San Joaquin Valley.

But the hospital still faces several hurdles before it could reopen and the bankruptcy only complicates matters, state Sen. Anna Caballero, a Democrat from Merced, said in an interview with The Bee on Friday.

“It’s never good to have such an important resource in bankruptcy court,” she said, “because then you lose the ability to make decisions that are in the best interest of the community.”

Madera shut down in late December after Fresno-based St. Agnes Medical Center and its parent company, the Michigan-based hospital chain Trinity Health, walked away from a proposed merger. Madera Community Hospital filed for Chapter 11 bankruptcy in March and has been seeking a new partner ever since.

On Tuesday, a federal bankruptcy judge will hear a request for an extension on the hospital’s spending plan through Aug. 24.

One item that the judge will want to see is whether Madera County’s Board of Supervisors vote to allocate $500,000 to help fund the hospital’s operating expenses through the month of August. The vote is taking place Tuesday in a meeting held at the same time as the bankruptcy proceeding.

Adventist is also requiring that the hospital secure state funding from the California’s Distressed Hospital Loan Program and the California Health Facilities Financing Authority for the deal to go through. Madera applied for $80 million from the state loan program. A decision on the loan determinations is expected in August.

“If Madera succeeds in getting the financial resources it needs, Adventist Health will provide Madera Community Hospital with the expertise of a large healthcare system, helping to secure a sustainable future for healthcare in Madera County,” said Kerry L. Heinrich, chief executive of Adventist Health, in a press release.

Adventist Health and Madera Community Hospital also have to negotiate and sign a management services contract, subject to court approval. Once an agreement is signed, it could still take months for the hospital to start operations.

In a report presented to the Madera County Board of Supervisors last week, Force 10 Partners – a financial advisory firm hired by the county to analyze hospital reopening options – estimated it would take six to nine months for the hospital to reopen once an agreement is reached with a system-affiliated operator.

It’s unclear how many jobs could be saved or restored until more details of the potential management services agreement are finalized. It’s also unclear what level of service might return under Adventist management.

But one thing is clear for Paulo Soares, chief executive at Camarena Health, a community-based healthcare provider that has taken on nearly 7,000 patients since the hospital’s closure.

“The lack of an ER (emergency room) here locally,” he said in an interview with The Bee, “has been a huge, huge deficit.”

Madera clinic absorbs thousands of patients after hospital closure

Without an emergency department in Madera County, Camarena has had to expand its urgent care operations since the hospital’s closure.

“We’ve more than tripled our urgent care provider staffing in Madera,” Dr. Joel Ramirez, chief medical officer of Camarena Health, said in an interview with The Bee last week. Patients should still go to a hospital in nearby Fresno or Merced counties for things like a heart attack, a stroke, or a large wound, “but really aside from that, we can do a lot in urgent care,” he said.

Camarena has also added a number of specialty services to its operations to meet patient needs – services that patients used to receive at Madera Community Hospital.

With more patients and more services, Soares said wait times at their clinics have increased. Prior to the hospital’s closure, patients were generally getting appointments within a week, he said. Now, it can take a month or longer for patients to see a doctor, depending on the specialty or location.

Soares said it could be worthwhile to rethink other services the hospital could provide and sustain, if and when it reopens, but the county needs an acute care facility.

“I think some of those emergent services, maybe some impatient beds, would make such a huge impact, positive impact for the community,” he said.

Local leaders ‘optimistic’ for Madera hospital reopening

Assemblymember Esmeralda Soria, a Democrat who represents California’s 27th district, which includes Merced, Madera and Fresno counties, said that she’s hopeful local residents could soon get their hospital back.

Working closely with Callabero, Soria introduced a bill in February to establish the state emergency loan program for distressed hospitals, which Gov. Gavin Newsom signed into law in May.

“Although I am aware that it will take time,” Soria said, “I remain optimistic that Madera Community Hospital will reopen its doors and be able to provide the critical care that families in our region need and deserve.”

Caballero said she was excited about the news of a potential partner – especially because the state had been “hesitant” to commit funding to the hospital without a clear plan.

While a lot of pieces have to fall into place for the hospital to reopen, Caballero said she’s confident that everything will come together.

“I think it’s going to happen,” she said.