Palm Drive counting down days to probable closure

Other storiesPalm Drive files for bankruptcy, plans to suspend services

April 7, 2014Options for Palm Drive dwindle

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April 5, 2014Financial stress at Palm Drive detailed

April 4, 2014District declares Palm Drive ‘fiscal emergency’

April 1, 2014

SEBASTOPOL -- With the decision to suspend all core services, including emergency care, at Palm Drive Hospital by the end of this month following its second bankruptcy filing in seven years, health officials are now scrambling to come up with a viable health care model for west Sonoma County.

But before any new model or new ownership structure can occur, hospital administrators and the district board that oversees the facility are similarly dealing with more immediate issues, such as restructured interest rates to bond holders and mountings losses.

North Bay Assemblyman Marc Levine, D-San Rafael, is currently crafting legislation that would permit Palm Drive to renegotiate its interest rates. Palm Drive Healthcare District is also working with the county on a possible bridge loan that would help it service the bondholders directly through tax rolls, according to Tom Harlan, CEO of the hospital. 

The district board is set to meet Friday afternoon to consider issuance of county tax- and revenue-anticipation notes totaling up to $1.8 million, according to the agenda circulated Thursday.

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