Kingsburg District Hospital will remain open as part of a six-month contract with Adventist Health beginning Oct. 15. Adventist Health, which owns Selma Community Hospital, will provide management and accounting services. "It will be a tremendous help to our smaller organization to have access to a larger health care system's expertise and resources," said Pilo Chavez, Kingsburg Hospital board chairman. The announcement was made Oct. 13 by Adventist Health.

The goals of the agreement are to evaluate the community's health care needs and explore how the two organizations can work together to best serve the region, Chavez said.

Over the next six months, the board at Kingsburg Hospital may contract with Adventist Health for additional services as needed.

The hospital's president and CEO Doug Skubitz will be employed as the administrator to help guide the process.

"Adventist Health has a system that is focused on providing outpatient services and bringing specialty services into the community, and we'd like to explore those opportunities," said Skubitz. "With these tough economic times for small hospitals, collaboration can help to provide the best services possible for our region."

Richard L. Rawson, president and CEO of Adventist Health services in the Central Valley, said Skubitz will be an asset because of his experience as well as his relationships with staff, physicians and the community.

The 35-bed Kingsburg hospital has about 160 employees. Services include skilled nursing, acute care, surgery, radiology and lab as well as a rural health clinic.

City Manager Don Pauley said this is a beneficial arrangement for the hospital and the community.

"Being able to take advantage of their resources is a very positive thing for this hospital," he said. "I can't think of any reason why this wouldn't be a good thing."

On Sept. 23, the Kingsburg City Council approved a $150,000 loan to the Kingsburg Hospital so it could meet its immediate money needs. The hospital has had financial problems in the past, closed its emergency room and filed bankruptcy. The hospital is expected to be through its bankruptcy and medical debts in 2012 or 2013.

Adventist Health owns and operates Selma Community Hospital, two hospitals in Hanford, 15 rural health clinics and about a dozen other health care service sites in the region. The Valley network -- which is part of a larger nonprofit, faith-based system of 18 hospitals in California, Oregon, Washington and Hawaii -- also is building a 142-bed hospital in Hanford.