Archive · 10 Dec 2025
Oroville Hospital Files Bankruptcy with $193M Debt
A hospital in California called Oroville Hospital has a lot of debt, about $193 million, which it used to build a new part of the hospital.
The hospital couldn't find a buyer or a bigger hospital to help, so it had to file for bankruptcy.
This is like when a person can't pay their bills and needs the court to help figure out how to pay them back.
The hospital says this is a step to find a partner who can help it keep serving the community.
The hospital will stay open while this is being sorted out.
It also runs many clinics in the area.
Some people who lent the hospital money might not get all of it back because the bonds are now worth less.
Oroville Hospital filed for Chapter 11 bankruptcy due to $193 million in municipal debt.
The debt was used to finance a new hospital tower, which was completed but awaits state approvals.
The hospital aims to find a partner with resources to invest and maintain its mission.
Oroville Hospital issued $196 million in municipal debt in 2019 to expand its facilities.
The hospital will remain open during the bankruptcy process and operates 31 clinics in Butte County.
- Who
- Oroville Hospital, a nonprofit healthcare provider in California
- What
- Filed for Chapter 11 bankruptcy due to $193 million in municipal debt
- When
- Monday (specific date not provided)
- Where
- Oroville, California, about 70 miles north of Sacramento
- Why
- Failed to sell itself or secure an affiliation with a larger hospital system, and struggling to pay outstanding municipal debt
- Hospital Name
- Oroville Hospital
- Location
- Oroville, California
- Distance from Sacramento
- 70 miles north
- Total Debt
- $193 million
- Debt Purpose
- Financing a new hospital tower
- Bond Trade Value
- 74 cents on the dollar (Nov. 17)
- Bankruptcy Case Number
- 25-26876
- Bankruptcy Court
- US Bankruptcy Court, Eastern District of California