😷New Chapter 11 Bankruptcy Filing - Beverly Community Hospital Association😷

On April 19, 2023, Beverly Community Hospital Association and two affiliates (the “debtors”) — nonprofit public benefit corporations and healthcare providers to predominantly people of lesser means in the City of Montebello — filed chapter 11 bankruptcy cases in the Central District of California (Judge Klein).

We’ve seen bits of this movie before so we’re very familiar with the plot:

• A large population living below the poverty line? ✅

• Patients without private health insurance (read: too much reliance upon Medicaid/Medi-Cal)? ✅

• Increasing costs of care — especially after covid? ✅

• Increasing human capital costs (i.e., nursing shortages and wage increases)? ✅

• Stagnating government reimbursements?✅

• Burdensome funded debt obligations (in this case, $65mm: $10mm RCF via Hanmi Bank and $55mm of revenue bonds trusteed by US Bank NA)?✅

This is — WOW: