Medical center cuts $1.4 million in health care as it prepares to shut down
A hospital in northern California is preparing to shut its doors in early January.
The California Medical Center in San Jose, which includes the hospital where the state’s largest hospital for critically ill patients and residents was founded, plans to close its doors by the end of January, its president, Gary D. Schiavone, told The Associated Press.
Schiavle said in a statement that the hospital was working to find a buyer for its assets.
The facility is also closing its operations.
Earlier this year, the hospital’s hospital service center, a small unit of the facility that supplies beds to emergency rooms and other hospital sites, began accepting patients.
The closure would also affect the medical center’s three other ambulatory care units and three outpatient clinics.
The California Health Care Authority will receive $1 million from the state to cover any losses incurred in closing the facility, according to a statement issued by the authority late Tuesday.
Schiaverne said the hospital is prepared to absorb the loss of a large part of its workforce, which is expected to be around 5,000, as it focuses on other health care services, including the care of the state-funded nursing home, which has been in operation since 2011.
The medical center closed for two weeks after a fire that destroyed the building and left about 1,500 residents without shelter and basic supplies, according, the AP reported.
It was not immediately clear if the hospital would reopen.
Schianosaid in a separate statement that California will continue to operate a limited number of nonemergency patient care centers at hospitals throughout the state, including hospitals in San Diego and Santa Cruz.
The hospitals will continue operating under a contract that covers their operating costs, the statement said.