Brotman Medical Center and the woods took separate paths — as in, out of — yesterday morning in bankruptcy court.
Its legal momentum continuing to build, the Culver City hospital essayed its most important victory yet, while Prime Healthcare, Inc., of Victorville, Brotman’s hostile would-be suitor, was dealt a crushing defeat.
The formal exit date forvacating the hospital’s bankrupt status still is to be determined.
In a whirl of far-reaching decisions, bankruptcy Judge Sherri Bluebond rejected Prme’s petition for about $10 million in so-called junk fees, and she issued the door-closing official approval of Brotman’s reorganization plan.
Her ruling came almost 15 months after the long financially troubled hospital plunged into Chapter 11 bankruptcy.
Although the precise amount of Brotman’s debt is liquid and not yet settled, sources said it will be in the range of $19 million to $20 million.
Since the Jewish Home for the Aging made a successful bid of $22 million for the western half of Brotman’s Downtown property last July, about 2.5 acres, that figure will be the hospital’s ticket back to the world of fiscal stability.
Prime Healthcare, a small and small-town corporation with, arguably, outsized ambitions, elbowed in aggressively last April as Brotman’s prime lender with the intention of ultimately acquiring the 85-year-old institution.
The only trouble is, said hospital officials, Brotman never was up for sale.
The relationship between Prime and Brotman was virtually warlike from the start.
Entering Culver City has been an unpoleasant spolash of water in the face for Prime. The Victorville company repeatedly has been denied its wishes in a series of recent court rulings.
Defeats are rare for Prime and its founder, Dr. Prem Reddy. He also was thwarted when he attempted to take over Anaheim Memorial Hospital.
