San Diego Hospice & Palliative Care Corp. will sell its unused 24-bed hospice facility for $10.7 million to Scripps Health unless a better bid turns up at an April 30 auction.
Under sale procedures approved last week by the U.S. Bankruptcy Court in San Diego, competing bidders must make a $300,000 deposit by April 26. A hearing to approve the sale will begin immediately after the auction.
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 is transferring 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. A hearing to approve financing is set for March 14.
The case is In re San Diego Hospice & Palliative Care Corp., 13-bk-01179, U.S. Bankruptcy Court, Southern District of California (San Diego).