MONTEBELLO — The owners of Beverly Hospital in Montebello filed for Chapter 11 protection Thursday prior to pursuing opportunities to sell the facility.
The hospital has secured debtor-in-possession financing of up to $13 million from Hilco Real Estate, which will enable the hospital to continue operations during the process, said Alice Cheng, president and CEO of Beverly Hospital.
The hospital serves primarily low- to no-income patients.
Through the sale process, Beverly will focus on working with potential buyers who can ensure the longevity of the hospital so that it can continue to serve the communities that need it the most, Cheng said.
The bankruptcy filing in Los Angeles follows Beverly’s announcement last month that it would be suspending certain services, including labor and delivery, postpartum care and inpatient pediatric care, effective June 11.
“The need to restructure is regrettable, but to save the hospital we were forced to take these necessary steps,” Cheng said in a statement.
“It’s a sad situation, but it’s essential for us to continue to provide healthcare for the people of our community.”
