Oroville Hospital has formally stepped into a bankruptcy process to reorganize its business operations due to financial turmoil. The California hospital says it will continue serving patients in Butte County throughout the restructuring process.
Oroville Hospital Seeks Bankruptcy Protection
The hospital facility from California has resorted to a Chapter 11 process in the U.S. Bankruptcy Court for the Eastern District of California. Oroville Hospital filed for the voluntary petition on December 8.
The community hospital serves Butte County patients and others from nearby locations with personalized health care. The community hospital offers a wide range of services, including childbirth, primary care, cancer treatment, and orthopedic surgery.
According to a statement shared via Businesswire, hospital officials said, “We believe this filing is an important step toward securing the hospital’s long-term future as a vital healthcare provider and employer in our community. The purpose of the filing is to facilitate a court-supervised transaction with a partner that has the resources and operating experience to invest in the hospital and maintain its mission for the benefit of all our stakeholders.”
Officials added, “It is important to emphasize that we will remain open and continue to operate during the Chapter 11 process. Patient care remains our top priority and will be unaffected. As part of this process, we have secured additional financing that will allow us to continue to provide patient care, support employees, pay vendors, and serve the community during the bankruptcy process.”
Recent Filings and Updates
The filing shows that Keith Owens and Nicholas Koffroth of Fox Rothschild LLP represent Oroville Hospital. Judge Christopher M. Klein is in charge of supervising the Chapter 11 case in the bankruptcy court.
Key details from the bankruptcy filing include:
- Filing Date: December 8, 2025
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 25-26876
- Estimated Assets: $500 million to $1 billion
- Estimated Liabilities: $100 million to $500 million
- Reason for Filing: Consistent financial issues require expert court supervision
The California Department of Health Care Services, Change Healthcare, Modern Sundt, the U.S. Department of Justice, and Cardinal Health are among the hospital’s 30 largest unsecured creditors. The official filing discusses that funds will be available to pay the creditors through the current Chapter 11 proceedings.
The hospital is receiving legal and financial advice from several firms, including Fox Rothschild LLP, FTI Consulting, Inc., and Cain Brothers. The law firm Hooper, Lundy & Bookman, P.C. is advising on healthcare regulatory and transactional matters.
The hospital is being advised by the law firm of Fox Rothschild LLP, under the leadership of partners Keith Owens and Nicholas Koffroth, which is serving as the general bankruptcy counsel.
Cain Brothers, part of KeyBanc Capital Markets, is advising Oroville Hospital on the restructuring. The filing notes that Robert Miller and Karl Schmitz from Hooper, Lundy & Bookman, P.C. serve as the healthcare regulatory and transactional counsel in the case. Epiq Corporate Restructuring, LLC is offering representation to the California facility as the claim’s agent.
The Chapter 11 case marks a significant step in the hospital’s effort to stabilize operations while continuing patient care. In the months ahead, the hospital’s future will hinge on the details of its reorganization plan.
