Valley Health System to file for bankruptcy
The Board of Trustees for the Valley Health System voted today to file for a petition for Chapter 9 bankruptcy to help save its financially-struggling hospitals.
The trustees asked attorneys from the Los Angeles-based law firm of Stutman, Treister, and Glatt to proceed with the filing. The next step is to formulate a new business plan for the hospitals and to negotiate with creditors over current contracts.
The public health system currently operates hospitals in Hemet, Menifee and Moreno Valley.
The trustees also named Tom Wilson to serve as chairman of the board. He succeeds Patrick Searl, who resigned Wednesday.
—Jamie Ayala
jayala@PE.com