Madera Community Hospital closer to reopening as Adventist Health agrees to manage facility

MADERA, Calif. (KFSN) -- Adventist Health is set to manage Madera Community Hospital following the approval of a non-binding Letter of Intent.

Madera Community Hospital closed its doors in December 2022 due to financial issues.

The hospital has secured minimal funding from the county to cover the next month of operating expenses but more is needed for the future.

"When we considered moving forward -- to consider the burn rate, we wanted to get a letter of intent," explained Madera County Supervisor Rob Poythress.

"We at least wanted to see that there was something going on, if there was nothing going on, if there were no potential suitors then, you know, we really don't want to put taxpayer dollars at risk."

On Tuesday, the Madera County Board of Supervisors will vote on giving the hospital $500,000 for the month of August, covering the cost of keeping the Madera Community Hospital building on standby.

"Keep the boilers going to keep the airflow throughout the hospital, which is very critical to prevent mold and other things that would compromise hospital operations if and ever, ever opened up again," said Poythress.

That money is now more likely to be approved after Adventist Health issued a non-binding letter of intent saying it will manage the hospital if money can be secured to reopen the facility.

It's a glimmer of hope but just a first step.

Now, Madera Community Hospital is hoping to secure funds from California's Distressed Hospital Loan Program.

"I'm very confident that that the hospital is going to get a loan with these new partners because these are partners who have experience in California, have 17 hospitals here, a nonprofit health system, and they know what they're doing," said Senator Anna Caballero.

Caballero has been working at the state level to help find funding for the hospital.

According to her, the hospital has requested an $80 million loan from the state program, which would be paid back over six years at 0% interest.

Caballero says they've also worked on securing financial support at the state level like the Managed Care Organization Tax.

"The reimbursement rate will be higher for MediCal patients and there will also be an opportunity for additional revenue for other kinds of services," Caballero said.

If approved for California's Distressed Hospital Loan, it is unclear how that money will be paid back.

Many rural areas across the state facing similar circumstances have set up taxing districts to fund their hospital.

Madera's plan still needs to be determined.

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