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Attorney General Bonta conditionally approves sale of Madera Community Hospital to Trinity Health

Press releases may be edited for formatting or style | December 16, 2022 Business Affairs
OAKLAND — California Attorney General Rob Bonta today conditionally approved the sale of financially distressed Madera Community Hospital to the Trinity Health Corporation. The 106-bed hospital located in the Central Valley offers vital services to more than 150,000 residents living in Madera and its surrounding communities. Many of those residents live in rural areas and rely on the hospital for critical care, as it is the only provider of emergency and lifesaving surgical services within a 30-minute drive. The conditions of Attorney General Bonta's approval will ensure the Madera community maintains access to critical emergency and surgical services in their area. Under California law, any transaction involving the sale or transfer of control of a healthcare facility owned by a nonprofit must secure the approval of the state Attorney General.

“When it comes to accessing emergency healthcare, every minute counts,” said Attorney General Bonta. “Having a hospital in the neighborhood can make the difference between life and death for a patient. Maintaining access to critical healthcare for our communities is always our top priority. Today's conditions seek to protect the welfare of Madera County residents, and ensure they can continue to access life-saving and hospital services when they need them most.”

The sale of Madera Community Hospital was found to be a benefit to the community, the majority of whose residents live in the predominantly rural Madera County area and are from lower-income Latinx communities. Many of them may lack transportation to the nearest alternative emergency or hospital services, which are approximately a 30-minute drive away in Fresno County.
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Besides emergency care, Madera Community Hospital also provides other important services to the community, including preventative and primary care services, treatment of chronic conditions, and women’s and maternal health services.

Under the terms of the sale, Trinity has committed to the following:

Making financing available up to $45 million for installing and implementing a new medical records system and providing seismic upgrades to the hospital;
Spending $3 million per year on other necessary investments into the hospital, including equipment upgrades
Under the terms of the conditional approval, the Attorney General has required, among other things, that Trinity:

Use commercially reasonable best efforts in good faith to maintain services at the Madera Community Hospital for 5 years;

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