SAN FRANCISCO — Voters in Riverside County, Calif., last week approved a proposal from the bankrupt Valley Health System to sell the public district's two hospitals and its other real estate assets to a for-profit group of local physicians.

If the bankruptcy court approves the deal, and the physicians' group comes up with financing, the district may be on its way to resolving its two-year old Chapter 9 bankruptcy and paying off $44.7 million of outstanding tax-exempt bond debt at par.

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