MARSHALLTOWN (AP) — Leaders of a Marshalltown hospital are moving ahead with selling the facility as part of bankruptcy proceedings.
The sale of Central Iowa Healthcare’s assets to Unity Point Health-Waterloo was unanimously approved by corporate members at a Tuesday meeting. Unity Point Health-Waterloo offered $12.5 million for the assets.
CIH members also outlined the loss of more than $18 million as of Nov. 30, 2016. If the sale is approved by bankruptcy court, the downtown Marshalltown hospital will no longer be an independent hospital. The hospital is the only full-service medical center in its area and has more than 60,000 residents depending on it for health care services.
A second measure approved at the Tuesday meeting retains 13 trustees until the end of the bankruptcy proceeding.
“The purpose of both resolutions was to advance quality health care in our community,” Board of Trustees President Carol Hibbs said. “We were happy corporate members agreed, it was important we pass both resolutions ... we were pleased to see that and ready to move forward until the next phase of maintaining quality health care in our community.”
The first of several hearings regarding the sale is scheduled to be held in bankruptcy court Jan. 13. The court, along with a committee of vendors, will determine the monetary payments CIH owes to vendors.
CIH filed for Chapter 11 bankruptcy on Dec. 20. Chapter 11 is a legal process created to aid companies in operations while they restructure their finances.
In addition to Marshalltown, CIH also has clinics in Conrad, State Center and Tama-Toledo.
“Regardless of ownership, having access to a clinic is vital to State Center ... many of residents depend on the local clinic to meet their medical needs,” State Center Mayor Harlan Quick said.