In Brief: Gardens Regional Hospital Files For Bankruptcy Protection

A Southern California hospital known for treating a large number of indigent and homeless patients has filed for Chapter 11 bankruptcy protection.

The 137-bed Gardens Regional Hospital and Medical Center filed for bankruptcy earlier this week, claiming more than $30 million in debt connected to low levels of reimbursement from the Medi-Cal program. It is based in Hawaiian Gardens, a down-on-the-heels city in Southeast Los Angeles County that borders Orange County, and claims to provide more than $11 million a year in charity care and community services.

According to the bankruptcy filing, the hospital needs to generate $129,359 in daily revenue to cover its costs. But it has been generating an average of $96,728 a day in cash.

The hospital is seeking financing in bankruptcy that would allow it to restructure and continue operating. Such financing would have to be approved by the court.

Last Year, Los Angeles City Attorney Mike Feuer sued the hospital, accusing it of patient dumping. The suit claimed it dropped one frequent patient at least six times on L.A.'s Skid Row between December 2013 and September 2014.