Sierra Kings Health Care District in Reedley has paid all creditors from a 2009 bankruptcy.
Six years ago, the Reedley hospital district was teetering on the brink of closure when it filed for Chapter 9 bankruptcy.
In 2012, the district agreed to lease its 49-bed hospital to Adventist Health/Central Valley Network to keep it open and agreed to a bankruptcy plan to pay creditors in full. Voters approved the deal. Adventist has been operating the hospital, now known as Adventist Medical Center, for the past three years.
The Sierra Kings Health Care District continues to operate, and chairwoman Kathy Omachi said in a written statement: “We have plans for using the revenues of the district in a cost-effective way so as to supplement and enhance the health care services provided to the people of the district to improve the quality of life.”
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Sierra Kings is the second rural hospital in the central San Joaquin Valley to announce this month that it had paid creditors in a bankruptcy plan. Dinuba’s Alta District Hospital, which closed in 2001, has paid creditors in full.