Pacifica Hospital of the Valley has filed for Chapter 11 bankruptcy, citing financial strains exacerbated by the COVID-19 pandemic and a recent lender dispute. The 231-bed facility, located in Sun Valley, California, serves a predominantly low-income population, with approximately 84% of its patients living at or below the poverty line and heavily reliant on Medi-Cal.

This marks the hospital's second bankruptcy filing, with a previous one occurring in 2009. The current filing lists $50 million to $100 million in assets and $100 million to $500 million in liabilities. The hospital's financial struggles are also linked to its historical dependence on Medi-Cal, which accounts for about 85% of its total revenue.

The bankruptcy raises concerns for the safety-net provider's ability to continue serving vulnerable populations in the San Fernando Valley. The financial health of hospitals catering to low-reimbursement sources like Medicaid remains a persistent challenge for the healthcare sector, potentially impacting access to care for underserved communities.