The nonprofit hospital located in Montebello on Thursday filed “a voluntary petition for Chapter 11 of the United States Bankruptcy Code,” according to the official statement.
Beverly Hospital, located in the 309 block of Beverly Boulevard, said it was looking for potential buyers and wanted hospital service to continue with potential new owners.
“The need to restructure is unfortunate, but to save the hospital, we were forced to take these steps,” said Alice Cheng, president and CEO of Beverly Hospital. “It is a sad situation, but it is essential to continue to provide health care to people in our community.”
The hospital has secured debtor-in-possession financing of up to $13 million from Hilco Real Estate, which will allow the hospital to continue operating during the process.
The funding secured “will allow the hospital, which primarily serves low- and no-income patients, to continue to operate uninterrupted as it pursues strategic options for a forensic sale of the hospital,” they reported.
The hospital announced on March 16 that it would “suspend certain services, including labor and delivery, postpartum care, and inpatient pediatric care, effective June 11, 2023.”
Beverly Community Hospital was opened in 1949 and has a capacity of 202 acute care beds. Inpatient income accounts for 91% of government-funded care: 48% paid for by Medicare and 43% by Medi-Cal.