California’s Watsonville Community Hospital Files for Bankruptcy

Watsonville Community Hospital filed for Chapter 11 bankruptcy on Sunday after the pandemic exacerbated its losses. The 126-year-old hospital plans a sale to a not-for-profit in a process funded by its landlord.

• Lender Medical Properties Trust Inc. agreed to fund operations and bankruptcy expenses through March 22 to facilitate a sale to not-for-profit Pajaro Valley Healthcare District Project
• Pandemic exacerbated the “substantial operating difficulties and negative cash flows” that have burdened the hospital since Quorum Health Corp. sold it to Halsen Healthcare Inc. in 2019, Chief Restructuring Officer Jeremy Rosenthal said in a court filing.
  • Halsen sold the ...