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Coalinga hospital filing for bankruptcy – employees owed $250K in vacation, sick time

The Coalinga Regional Medical Center board of directors voted to file for Chapter 9 bankruptcy on Sept. 5, 2018.
The Coalinga Regional Medical Center board of directors voted to file for Chapter 9 bankruptcy on Sept. 5, 2018.

The Coalinga Regional Medical Center board of directors voted Wednesday night to file for Chapter 9 bankruptcy protection.

The hospital in southwest Fresno County has a debt of about $5 million in bills it owes to unsecured creditors, said CEO Wayne Allen. The debt includes $250,616 owed to 115 employees for accrued vacation and sick time, he said.

The hospital plans to file for Chapter 9 bankruptcy protection. Chapter 9 of the bankruptcy code covers municipalities and other government entities. The hospital qualifies because it is a taxpayer-supported district hospital under the state’s district laws.

The Coalinga hospital ran out of cash and the board voted on July 12 to close the hospital after efforts to keep it open failed. It closed patient care operations on July 16.

The closure has left people in the city of 17,000 without an emergency department for 40 miles.

Barbara Anderson: 559-441-6310, @beehealthwriter
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