Last Updated on December 9, 2025 by The HD Post Staff
CALIFORNIA – Oroville Hospital and its parent company announced December 8 that they filed for Chapter 11 bankruptcy in order to “help facilitate and maximize the value of a transaction and preserve its critical healthcare facilities for the community.”
The nonprofit hospital has struggled to repay $193 million in municipal debt used to fund a new medical tower.
The construction of the facility was completed in March, but its opening was delayed as the hospital awaits state approvals, according to a local news report.
Despite the filing, the hospital says it will remain fully operational during restructuring – its skilled‑nursing facility, clinics, and other services will continue to serve patients.
Under the bankruptcy process, the hospital obtained financing to maintain patient care, support staff, pay vendors, and serve the community.
“We believe this filing is an important step toward securing the hospital’s long‑term future as a vital healthcare provider and employer in our community,” hospital officials said in a statement.
The goal is to find a partner with the resources needed to invest in the facility and sustain its mission.
Serving Oroville since 1962
In 2019, Oroville Hospital issued roughly $196 million in municipal bonds to expand its 133‑bed facility to 211 beds, doubling its square footage.
Located 70 miles north of Sacramento, the hospital has served Oroville and surrounding communities since 1962.
The hospital has hired Cain Brothers, a KeyBanc Capital Markets division, to advise on selecting an affiliation partner.
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