11/28/2014

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Local & Regional

County leaders approve loan increase for KMC

County leaders approve loan increase for KMC
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BAKERSFIELD, Calif. (KBAK/KBFX) — Kern County supervisors have approved a plan to start fixing financial woes at Kern Medical Center.

Earlier this month, KMC CEO Paul Hensler was fired by the board. At the time, the hospital was tens of millions of dollars in debt because of money mismanagement.

They had been over-projecting revenues by about $1.5 million a month.

Tuesday, the Board of Supervisors voted to increase a loan to $121 million to cover costs of paying employees.

The board also approved a recommendation from county budget staff that would make up another $19.5 million in funding by taking money from county reserves, cutting from KMC's budget and cutting the budgets of other county departments.

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