US Fights Oroville Hospital’s CEO-to-Consultant Transition Plan

The Justice Department’s bankruptcy oversight unit moved to block bankrupt Oroville Hospital from implementing a management transition plan that would see the Northern California health-care provider’s CEO resign and become a consultant.

Bankruptcy rules prohibit the nonprofit hospital from employing CEO Robert J. Wentz as a consultant while it winds its way through a Chapter 11 restructuring process being scrutinized over business relationships with for-profit affiliates, the US Trustee’s office said in an objection Wednesday with the US Bankruptcy Court for the Eastern District of California.

Oroville laid out a management makeover in a bankruptcy court motion earlier this month, ...