The Tulare Local Healthcare District marked a significant milestone on Tuesday, April 29, 2025, as it received its full discharge from bankruptcy. The order was issued by the United States Bankruptcy Court for the Eastern District of California, Fresno Division, with the Honorable René Lastreto II presiding.
The District’s bankruptcy was the result of severe financial challenges stemming from the mismanagement of Tulare Regional Medical Center by its former operator, Healthcare Conglomerate Associates (HCCA).
In response, the District initiated Chapter 9 proceedings in late 2017, aiming to restructure its obligations and restore critical healthcare services to the Tulare community. Partnering with Adventist Health, the District successfully reopened the hospital on October 15, 2018, resuming essential medical services for the region.
“This discharge marks the culmination of years of dedicated efforts to stabilize and rebuild both our operations and financial health,” said Kevin Northcraft, President of the District’s Board. “We are incredibly thankful to the Court, our legal and financial teams, and especially to our community for their continued support throughout this journey. Ongoing use of Adventist Health facilities within our district will help ensure a healthier future for the 88,000 residents and visitors we serve.”
With the discharge in place, the District is no longer under the jurisdiction of the bankruptcy court. While it remains obligated to make scheduled payments to unsecured creditors over the next five years, it now has the freedom to fully pursue its strategic and operational goals without the constraints of court oversight.
Now on firm financial footing, the Tulare Local Healthcare District remains committed to enhancing healthcare access and expanding services for the residents of Tulare and surrounding communities.