‘Stalking horse bidder’ submits preliminary offer to rescue bankrupt community hospital
A California-based community hospital says it has a preliminary agreement in place with an unnamed bidder that would provide the capital required to keep its doors open.
Watsonville Community Hospital, a 106-bed acute care institution located along California’s central coast, voluntarily filed for Chapter 11 bankruptcy on Sunday as part of a plan to sell. Now, leadership says a “stalking horse bidder” has agreed to acquire the hospital, which will ensure it can continue to care for patients.
“Our goal is to keep Watsonville Community Hospital open so that it can provide critical healthcare to the community while also saving approximately 650 jobs,” Jeremy Rosenthal, chief restructuring officer at Force10 Partners, which is leading the process, said Tuesday.
A stalking horse offer sets the lowest price for a future bidding range, ensuring a bankrupt company does not receive lower offers. These bidders are afforded multiple incentives, including expense reimbursements and breakup fees.
Officials did not immediately respond to a Health Exec request for additional details regarding the offer.
“We appreciate the continued support of our physicians, nurses, other staff, and labor union partners as well as our vendors as we work through this process,” Rosenthal added in a statement. “We are excited that the hospital is positioned to continue providing care to the community long into the future.”
Matt joined Chicago’s TriMed team in 2018 covering all areas of health imaging after two years reporting on the hospital field. He holds a bachelor’s in English from UIC, and enjoys a good cup of coffee and an interesting documentary.