Pay at Santa Paula Hospital Delayed

Frustrated Santa Paula Memorial Hospital employees were turned away Friday when they showed up to collect paychecks at the shuttered facility.

Two hundred employees had hoped that they would be compensated for their final days worked before the hospital shut down all inpatient services last week.

A federal bankruptcy judge had ordered Wednesday that the $225,000 payroll be released to employees the day after Christmas, said Philip Romney, chairman of Santa Paula Memorial’s board.

But the hospital’s lender did not follow through on a request to transfer the money, Romney said at midday Friday. Romney said he did not know what the problem was, and he did not return later calls.

Nurse Carol Askren, who is working temporarily at the hospital, said employees who called to inquire about the checks were told to try again Monday.

“Some people were waiting until 3 p.m.,” Askren said. “But they said they couldn’t guarantee they could pay us today. They said to wait until Monday to make sure the transfer occurred.”

The hospital has been in a financial tailspin because of mounting debt, and it filed for Chapter 11 bankruptcy protection Monday.

In court documents, the hospital listed assets of $14.5 million and liabilities of $8 million.

Hospital board members have tried to partner with the Ventura County Health Care Agency to keep Santa Paula Memorial open, but so far they have been unable to reach an agreement.

County officials and hospital trustees still hope a pact can be struck that would allow the facility to reopen within six months.

A meeting is scheduled for Jan. 6.

Until then, the hospital’s license will remain suspended, hospital trustee Rodney Fernandez said.

“I’m hopeful that on the 6th we can at least have the essence of a deal and then move forward to make it formal,” he said.

Closure of the hospital limits emergency care for 50,000 people who live in the Santa Clara Valley.

The next-nearest hospital is 20 miles away in Ventura.