California Hospital With $193 Million Muni Debt Files Bankruptcy

A California hospital about 70 miles north of Sacramento filed for Chapter 11 bankruptcy Monday after failing to sell itself or secure an affiliation with a larger hospital system.

The nonprofit Oroville Hospital has been struggling to pay $193 million of outstanding municipal debt used to finance a new tower. The construction of the facility was completed in March but its opening was delayed as the hospital awaits state approvals, according to a local news report.

“We believe this filing is an important step toward securing the hospital’s long-term future as a vital healthcare provider and employer in ...