adventist health

Not a bribe, Modesto company’s lawyer says of job offer, $150,000 check for hospital CEO

Addressing a federal judge, a lawyer representing a Modesto-based hospital management company stressed that his client back in May wasn’t trying to “bribe” a Central San Joaquin Valley hospital executive when they handed her a $150,000 check and a job offer amid negotiations.

Hamid Rafatjoo, a partner with Raines Feldman Littrell LLP and lawyer for American Advanced Management Inc., told U.S. Judge René Lastreto II over Zoom in court on Tuesday that his client wasn’t trying to gain competitive advantage in a bidding process to take over operations of bankrupt Madera Community Hospital.

“Obviously, there were better ways of handling that process,” Rafatjoo said, “but it didn’t come from a place of trying to bribe anyone.”

“My client did what it did,” he said, adding that the actions took place before he was retained.

A business law expert contacted by The Bee said there was nothing illegal about the offer, though it looks “irregular” and “awkward” and the circumstances suggest it should have been fully disclosed in bankruptcy court.

Rafatjoo also took the opportunity Tuesday to tell the judge that AAMI’s offer to take over operations of Madera Community Hospital was superior to the current proposed partner and that it

Read the rest

Job offer, $150,000 check for Madera hospital CEO was not a ‘bribe,’ lawyer tells judge

Addressing a federal judge, a lawyer representing a Modesto-based hospital management company stressed that his client back in May wasn’t trying to “bribe” a Central San Joaquin Valley hospital executive when they handed her a $150,000 check and a job offer amid negotiations.

Hamid Rafatjoo, a partner with Raines Feldman Littrell LLP and lawyer for American Advanced Management Inc., told U.S. Judge René Lastreto II over Zoom in court on Tuesday that his client wasn’t trying to gain competitive advantage in a bidding process to take over operations of bankrupt Madera Community Hospital.

“Obviously, there were better ways of handling that process,” Rafatjoo said, “but it didn’t come from a place of trying to bribe anyone.”

“My client did what it did,” he said, adding that the actions took place before he was retained.

A business law expert contacted by The Bee said there was nothing illegal about the offer, though it looks “irregular” and “awkward” and the circumstances suggest it should have been fully disclosed in bankruptcy court.

Rafatjoo also took the opportunity Tuesday to tell the judge that AAMI’s offer to take over operations of Madera Community Hospital was superior to the current proposed partner and that

Read the rest

3 California Hospitals Declared Bankruptcy This Year. Health Chains Could Keep Them Alive

Madera is also awaiting another $5 million in state funding that was granted in last year’s budget but placed on hold when the hospital closed.

In a letter outlining its terms (PDF), Adventist Health said it will require at least $55 million to fund staffing, supplies, maintenance, training and services in the first year, and another $30 million in the second year. Madera Community Hospital would have to pay Adventist a management fee.

In exchange, the health system would provide its management expertise and personnel to support Madera’s reopening. According to the proposal, Adventist would have the option to purchase the hospital after three years.

Empty building covered with a tarp.
Outlines of the Madera Community Hospital sign being covered by a tarp at the Emergency Room entrance of the hospital on Jan. 2, 2023. Madera County Sheriff Tyson Pogue announced a state of emergency for the county when the hospital shut its doors due to bankruptcy. (Larry Valenzuela, CalMatters/CatchLight Local)

Paolinelli said a management agreement is the hospital’s best bet at reopening. It has not found a buyer for a straightforward sale. Paolinelli said she has not discussed with Adventist whether she will stay on as head of the hospital.

Adventist Health has experience

Read the rest