San Diego Hospice & Palliative Care Corp. is transferring the patients and selling a non-operating hospice facility to Scripps Health. The sale process begins with a hearing Tuesday.
The not-for-profit provider of home health-care services filed for Chapter 11 reorganization on Feb. 4 in San Diego after the patient census fell by half and a Medicare investigation cut off reimbursement.
San Diego Hospice intends to transfer the 450 patients to Scripps, a not-for-profit San Diego health-care provider. Scripps will provide a $5 million loan to continue operations until the patients can be transferred.
Scripps is offering to buy an unused 24-bed hospice facility for $10.7 million. There will be a hearing Tuesday for approval of auction and sale procedures.
The case is In re San Diego Hospice & Palliative Care Corp., 13-01179, U.S. Bankruptcy Court, Southern District California (San Diego).