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Palo Verde Healthcare District Files for Bankruptcy
['Jesus Reyes']
KESQ
BLYTHE, Calif. (KESQ) - The Palo Verde Healthcare District has filed for Chapter 9 bankruptcy in an attempt to stabilize its longstanding financial struggles and preserve services at Palo Verde Hospital in advance of its planned Nov. 23 closure.
The district's board of directors voted on Sept. 22 to file for bankruptcy and the petition was filed Tuesday in the U.S. Bankruptcy Court for the Central District of California, Riverside Division.
As reported by News Channel 3's Athena Jreij, the district began the process of closing the hospital Sept. 24.
Chapter 9 will allow the district to continue daily operations while it plans to adjust debts and communicate with employees about any changes.
The next steps will be to continue to consult with legal and financial consultants and communicate with everyone involved, the district said.