Victor Valley Hospital Seeks Chapter 11

The Victor Valley Community Hospital filed for Chapter 11 bankruptcy protection earlier this month.

The nonprofit hospital, based in Victorville, faced mounting financial pressures exacerbated by low occupancy rates and a high percentage of patients on low-paying government insurance programs, according to published reports.

Hospital officials have been trying to negotiate a sale to the Prime Healthcare Services Foundation, an effort that it will now pursue through the Chapter 11 process, according to documents filed with the federal bankruptcy court.

The proposed asset sale agreement filed with the court calls for Prime to redeem the hospital’s tax-exempt debt. The hospital has $1.8 million in principal outstanding on its Series 2000A revenue refunding bonds issued through the California Health Facilities Financing Authority.

Other bids for the hospital will be sought through the bankruptcy process.

“The hospital’s management and board are extremely saddened that we were forced to file for protection under federal bankruptcy law,” the hospital’s chief executive, Catherine Pelley, said in a statement reported by local newspapers.  “It was clearly not our desired outcome. This decision was made with one goal in mind — the continued delivery of high-quality care to the High Desert communities we serve.”

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