Local Hospital District Files for Chapter 9 Bankruptcy

On October 8, 2009, Sierra Kings Health Care District filed for Chapter 9 bankruptcy protection. Chapter 9, similiar to a Chapter 11 reorganization, but is specifically designed for certain types of government entities.

The the District operates a hospital and clinics in Fresno and Tulare Counties. Their financial struggles have been building, but they have attempted non-bankruptcy measures before pursuing bankruptcy reorganization.

In a statement released by SKHCD, the hospital stated it would continue to remain open during the financial reorganization.

“Chapter 9 will best protect patients, employees and citizens of the district,” said Sanford Haskins, the CEO of SKCHD. “We are confident we can increase our revenues to the point we can reorganize.”

The case was filed in the Fresno Bankruptcy Court and will most likely be administered by the existing board.

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