Investors Weigh Hospital Risks

Note: A Coalinga resident expressed their concern because they thought the journalist here has posed Dr. Singh in a somewhat unfavorable light. As the writer in question, I would like to clarify the issue.

Dr. Singh is a physician who works with a group: American Advanced Management Group which has reopened four failing hospitals in California. The group has success and knowledge and is poised to repeat their success in Coalinga at the medical facility there.

AAMG plans to invest a very large amount of capitol to revitalize Coalinga Regional Medical Center. Not only is the amount of money invested large, (estimated to be between $6 – $10 million), but the task itself is enormous. This group is willing to put their best efforts into resuscitate the area’s only medical care facility. They are willing to stake their success on the community of Coalinga and its support of a reworked facility.

“Dr. Singh is taking a major risk by coming to where a nice hospital failed and restoring the same services which ultimately resulted in a closing,” explained CRMC board president, Bill Lewis.

Even as the ink was drying on the lease contract between Coalinga Regional Medical Center District and Advanced American Management Group, another element muddied the waters.

Adventist Health has moved toward purchasing a plot of land near the intersection of Elm and Polk Streets where they propose to build a larger scale of their current clinic which is in a rental property in Coalinga. The newer site would allow them to see more patients and offer more services. It also fits their model of standard care and standard facilities.

The below Lessee option to Terminate was added to the contract, and as readers can see, it offers the lessee (buyer) the option of terminating any and all agreements with a written notice if Adventist Health or any other Federally Qualified Health center (FQHC) is approved to operate with in the city of Coalinga or within a reasonable radius from the hospital….


Of course, no one can be sure of what could happen, but this development does demonstrate a reticence of AAMG to undertake the CRMC project if it is in competition with any other facility.

“When Dr. Singh/AAMG asks for a non-competing clause in the lease agreement,” explained Lewis,  “he is only protecting himself from the same siphoning away of patients that occurred in the past. If the citizens want the new hospital to succeed, they will need to demonstrate some semblance of loyalty by using the hospital in as many instances as possible.”

Most Coalinga residents understand the importance of quality medical care provided within the city.