The reorganization plan submitted by Alhambra Community Hospital, which entered bankruptcy proceedings in 1981, has been approved by the Bankruptcy Court. The hospital will ask creditors to vote by Nov. 13 on its plan to pay $1.15 million in debts over the next five years. The major creditors include about 150 hospital supply companies.
The plan projects a rise in the hospital's net profits from $311,000 this year to $1.7 million in 1990. Under the plan, the average daily room rate would rise 11.5% over the next five years, from $346 to $386, accompanied by a 59% increase in in-patient hospital use.
The financial projections take into consideration redevelopment in Alhambra, under which the economy and population are expected to grow substantially, said Jack Manley, the hospital's chief executive officer. The hospital is owned by the Alhambra Redevelopment Agency, which leases it to the city of Alhambra, which in turn subleases it to the Alhambra Community Hospital Corp.
After the hospital fell behind in its rent to the agency, an agreement was reached in 1983 under which the hospital is paying current rent and the delinquent rent with interest. The city and its redevelopment agency are not considered creditors under the bankruptcy procedure.