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California hospital seeks bankruptcy

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Published: Dec. 24, 2003 at 10:13 AM

SANTA BARBARA, Calif., Dec. 24 (UPI) -- Santa Paula Memorial Hospital in southern California has closed and filed for bankruptcy, the Los Angeles Times reported Wednesday.

The move comes just days after growing debt forced the 42-year-old hospital closed its doors.

The hospital, which filed Monday for Chapter 11 in Santa Barbara, was scheduled to ask a judge's permission to use assets to pay its remaining employees.

Many of the facility's 200 full- and part-time employees were given a 30-day notice and are expected to work through Jan. 14 to close down operations.

"We had hoped to be able to reorganize informally by agreement with our creditors, but some of them were uncooperative," Phillip H. Romney, chairman of the hospital's board of directors, said Tuesday.

Talks on negotiating a merger of the closed facility into the county health care system broke off last week, but both sides plan to resume talks Jan. 6.

© 2003 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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