As contract lapses, local anesthesia group declares bankruptcy

The Regional Community Anesthesia Medical Group provides anesthesia services to community medical centers at its three main hospitals: Clovis Community Medical Center, Community Regional Medical Center, and Fresno Heart and Surgical Hospital. Photo by Matías Ramos via unsplash.com

Community Regional Anesthesia Medical Group seeks Chapter 11 protection, which helps reorganize the business and pay off creditors – in this case, community medical centers. He filed a Chapter 11 petition yesterday with the United States bankruptcy court in Fresno.

The Regional Community Anesthesia Medical Group provides anesthesia services to community medical centers at its three main hospitals: Clovis Community Medical Center, Community Regional Medical Center, and Fresno Heart and Surgical Hospital.

The company has served the region for more than 20 years and its estimated assets are between $ 1 million and $ 10 million, according to court documents. He owes community health centers and Fresno First Bank $ 5.1 million over $ 53,000 on behalf of a Paycheck Protection Program loan.

” For more than 20 years [Community Regional Anesthesia] took great pride in providing excellent service to the community medical center and its facilities. It is very disappointing that [Community Regional Anesthesia] got caught up in the political battle raging in Fresno, and that [Community Medical Center] chose to let the contract expire, ”said Carolyn Larsen, executive director of Community Regional Anesthesia Medical Group, Inc.

Community medical centers said the regional community anesthesia medical group did not respond to a request for proposal.

“In accordance with standard and prudent business practice, and prior to the expiration of the CRAMG Agreement, Community requested offers from interested anesthesia service providers. Unfortunately, CRAMG did not respond to our call for tenders. However, Community will continue to provide the same high quality services that we have always provided from highly trained anesthesia providers, ”said Michelle Von Tersch, senior vice president of communications and legislative affairs for the community health system.

The Community Regional Anesthesia Medical Group planned to renew a contract with the community medical centers before allowing the agreement to expire.

“As [Community Regional Anesthesia]the contract was exclusive to [Community Medical Center], and because of the significant legal fees spent defending against unworthy pay and hours by two anesthesia nurses, [Community Regional Anesthesia] filed Chapter 11 and will be filing their Chapter 11 plan soon, ”Larsen said.

The Honorable Judge Rene Lastreto II is appointed as presiding judge and the Community Regional Anesthesia Medical Group is represented by Riley Walter, insolvency lawyer. Mandy Jeffcoach and Ryan Eddings represent the group as legal counsel.

Through a business agreement between Community Regional Anesthesia and Community Medical Centers, Community Regional Anesthesia contracts with medical providers who administer services to patients. Larsen said that because of this there should be no disruption in the provision of anesthesia services.

Community health centers are in the process of contracting with a newly formed group that will provide the same anesthesiology services, Larsen believes.

The regional community anesthesia medical group will continue to work with community medical centers until the contract expires on August 13. Anesthesiologists are independent contractors with the medical group, and many plan to continue providing care.

“[Community Regional Anesthesia] liquidate its assets and distribute them to its creditors, the most important of which will be [Community Medical Centers]”said Larsen.

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