Council updated as bankruptcy court considers SPMH equipment sale

August 13, 2004
Santa Paula City Council

The City Council heard updates on reopening Santa Paula Memorial Hospital on August 2, the same day a request to sell medical equipment to help pay expenses incurred in “winding down the operation of the hospital” was being readied for the bankruptcy court.

By Peggy KellySanta Paula TimesThe City Council heard updates on reopening Santa Paula Memorial Hospital on August 2, the same day a request to sell medical equipment to help pay expenses incurred in “winding down the operation of the hospital” was being readied for the bankruptcy court.Sitting as the Healthcare Authority, City Manager Wally Bobkiewicz told the council that in the last eight months he feels “more confident today about the opportunity to see SPMH reopen.”The hospital, only one of three community funded medical facilities in the state, shut its doors Dec. 19, a year after SPMH directors announced that it was verging on closure. Bankruptcy was filed three days later.A goal has been to find a buyer for the SPMH campus as well as a buyer for the surrounding 24 acres “to satisfy the creditors,” now owed about $8 million, not including the employee pension plan.Bobkiewicz added that he and City Attorney Karl Berger have been working closely with the creditors and other “interested parties.”Marsha Rae of a newly formed SPMH Task Force, said that upon its May founding a commitment was made to a 90-day deadline to “come up with viable real estate solutions to the problem.”The Task Force has also been meeting with the creditors’ committee and has “aggressively pursued discussions with developers…late today we received an offer from a local developer,” that will be taken to the creditors committee and SPMH directors.
Another offer for the highly desirable hillside property is expected, but the Task Force has no powers of negotiation, Rae added.Extensive negotiations with a “viable operator” make a presentation of a business plan to the bankruptcy court within the next few weeks possible, said Rae.Also present at the meeting was Al Martia of Kare Healthcare Inc., who has been working with SPMH staff on reopening the hospital. Martia said later Kare has not been in discussions with the Task Force nor the City of Santa Paula.Within days of the council meeting a proposal to sell hospital medical equipment was being readied for submittal to the Santa Barbara Bankruptcy Court.According to the declaration by Gene Kaberline, interim SPMH CEO, the equipment sought by Bradley Spiegel, MD includes an anesthesia delivery machine and monitor, cauterization equipment, a defibrillator and double tourniquet system.The $32,500 purchase price was determined with the former surgery director of SPMH and the former biomedical maintenance technician, Kaberline attested.“The proceeds from the sale of the equipment will be utilized by the debtor to pay ongoing expenses incurred in winding down the operation of the hospital,” noted Kaberline’s statement.



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