Distressed California Hospital Fights for Bankruptcy Eligibility

July 18, 2024, 7:25 PM UTC

A troubled California municipal hospital operator urged a federal judge to allow its reentry into insolvency protection, saying its dire finances weren’t properly analyzed by a bankruptcy court that dismissed its case.

The San Benito Health Care District, which operates the 25-bed Hazel Hawkins Memorial Hospital and a number of other rural health-care facilities across San Benito County, contends that the US Bankruptcy Court for the Northern District of California improperly threw out its case earlier this year by taking an “unduly narrow” view of its eligibility.

The bankruptcy court concluded in March that San Benito didn’t qualify for relief ...

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