Affiliated Medical Enterprises of Orange--which operates five hospitals, including Pacifica Community Hospital in Huntington Beach--confirmed Friday that it has invited creditors next week to a meeting at which the company will present a plan for restructuring its debts.
In 1988, Affiliated Medical, a small health care company, borrowed heavily to complete a $100-million acquisition of four acute-care hospitals from American Health Group International in Kirkland, Wash.
As part of that deal, Affiliated Medical refinanced a hospital it already owned in Ojai and arranged $68 million in senior debt financing from a banking and insurance syndicate led by First National Bank of Boston.
Doug Webster, Affiliated Medical's chief financial officer, said a three-year loan that must now be refinanced paid for the acquisition. Also, he said, the company's proposal to restructure debts would pay outstanding bills to vendors.
Webster declined to say how much the company owes suppliers and other creditors, whether it intends to pay its debts in full or whether some facilities must be sold.
He said the privately held company will explain its financial situation next week to creditors.
Besides the Huntington Beach hospital, it operates Pacifica Hospital of the Valley in Sun Valley, Idaho; Palmdale Hospital Medical Center in Palmdale; Roosevelt Hospital in Portales, N.M., and Ojai Valley Community Hospital.
Pacifica Community has had difficulty filling its beds. Its patient occupancy rate slipped from 32% in the fourth quarter of 1988 to 27% in the same period of 1989, according to the state Office of Statewide Health Planning and Development.
Webster said a plan announced by the company in March, 1989, to expand the Huntington Beach hospital with a $20-million, five-story extension has been placed "on hold."
However, he said, the company is going ahead with building a hospital to replace an older facility in Palmdale.
Richard Carpe, a health care specialist with the accounting firm Laventhol & Horwath in Costa Mesa, said Pacifica Community has lost part of its market to nearby Humana Hospital-Huntington Beach, which along with other county Humana hospitals has been marketing aggressively.
Pacifica Community, he said, "has not succeeded in establishing a drawing-card identification for the facility."