California Hospital’s Municipal Bankruptcy Dismissed by Judge

A California public hospital operator’s municipal bankruptcy was tossed when a judge found that it didn’t show it was insolvent.

Though the San Benito Health Care District faced financial challenges, including labor costs and working capital shortages, it failed to provide sufficient evidence to support its quest for bankruptcy protection, Judge Stephen L. Johnson of the US Bankruptcy Court for the Northern District of California held in a Thursday decision. His ruling was a win for unions representing hundreds of healthcare workers employed by the district that challenged the case. The hospital district had filed Chapter 9, a type of ...