Sierra Kings Health Care District voters Tuesday overwhelmingly approved a proposed sale of the bankrupt hospital to Adventist Health.
The measure was approved by 95% of the 2,503 voters out of the more than 14,000 registered in the district, according to unofficial results from the Fresno County clerk’s office.
In April, the board of the bankrupt Health Care District approved a letter of intent to join Adventist.
The small public hospital district, located in the Central Valley near Fresno, asked voters to allow it to lease its facilities and sell other assets to Roseville-based Adventist, which would take over operations.
The district, comprised of a hospital and five clinics in Reedley, filed for bankruptcy in October 2009 after discovering management had spent $1.7 million of bond funds on operating expenses and misspent other funds.
The district collects taxes to pay for voter-approved general obligation bonds.
Sierra Kings had $34 million of outstanding debt as of the June 30.
As part of the deal, the district will retire $7.5 million of revenue bonds, according to a statement by Adventist.
The U.S. Bankruptcy Court for the Eastern District of California has already protected the hospital district’s GO bonds from the bankruptcy process.
