The Downey Patriot reports that Downey Regional Medical Center is aiming to exit Chapter 11 protection in September.
According to the report, Rob Fuller, executive vice president and chief operations officer of Downey Regional Medical Center, said "[The Company] continued to pay a lot of debt the past two years through financial arrangements with banks, obtained invariably with difficulty, but successfully nevertheless. Although the hospital's dysfunctional financial process has had an overhaul, [The Company] still faced with a tough payment schedule." Mr. Fuller said DRMC has just borrowed an additional $56.5 million, $45 million of which is earmarked for paying off "most of very, very old debts," with the balance going to be used for working capital, notes the report. The report says Mr. Fuller estimates DRMC's working capital needs right now range from $5 million to $10 million a year.
According to the report, one of the conditions mandated by the U.S. Bankruptcy Court was the preparation of a viable reorganization plan. Mr. Fuller said three inspectors from a medical accreditation group made an exhaustive audit of DRMC facilities and operations, and came away impressed with the process improvements the hospital had instituted following its crafted reorganization plan. Mr. Fuller added that a pre-inspection for DRMC's ISO 9001 certification was already performed and the inspector said he would recommend certification.
Downey Regional Medical Center-Hospital, Inc. -- http://www.drmci.org/Home%20Page -- is a non-profit community hospital. The Company filed for Chapter 11 on Sept. 14, 2009, with the Bankruptcy Court for the Central Court for California, Case No. 09-34714. Downey is represented in its Chapter 11 case by Lisa Hill Fenning, Esq., at Arnold & Porter LLP in Los Angeles, Calif. As of the petition date, Downey listed estimated assets and liabilities of $10 million to $50 million.
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The Healthcare Prospector identifies healthcare providers and other healthcare entities in transition. Coverage includes hospitals, nursing homes, long-term care facilities, physicians' medical groups, ambulatory care and outpatient centers, mental health facilities, healthcare real estate investment trusts (REITs), and medical laboratory and diagnostic imaging services.
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