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California anesthesia group files for bankruptcy
after hospital contract lapses
By Alia Paavola
C
iting a contract lapse with a Califor-
nia hospital network, Community
Regional Anesthesia Medical Group
in Fresno, Calif., filed for Chapter 11 bank-
ruptcy June 16, according to e Business
Journal.
e anesthesia group provided services to
Fresno-based Community Medical Centers'
three major hospitals. However, the contract
between the hospitals and the anesthesia
group recently expired.
e anesthesia group said it had expected
Community Medical Centers to renew its
contract before allowing it to lapse.
"For over 20 years [Community Regional
Anesthesia] took great pride in providing
excellent services to Community Medical
Center and its facilities," Carolyn Larsen,
executive director of Community Regional
Anesthesia Medical Group, told e Business
Journal. "It is very disappointing that [Com-
munity Regional Anesthesia] has gotten
caught up in the political battle raging in
Fresno, and that [Community Medical Cen-
ter] elected to allow the contract to lapse."
Community Medical Centers said it put out
a request for proposals for anesthesia groups
and that Community Regional Anesthesia
didn't submit one.
"In line with common, prudent business
practices, and in advance of the expiration
of the CRAMG agreement, Community
requested bids from interested anesthesia
service providers. Unfortunately, CRAMG
did not provide a response to our request for
a proposal," a spokesperson for Community
Medical Centers told e Business Journal.
"However, Community [Medical Centers]
will continue to provide the same high-qual-
ity services from highly skilled anesthesia
providers as we always have."
In the bankruptcy filing, the anesthesia
group listed its assets between $1 million
and $10 million and said it owes Community
Medical Centers $5.1 million. n
