California system, nonprofits pause lawsuit alleging $1B in misuse
California system, nonprofits pause lawsuit alleging $1B in misuse
Becker's Hospital Review; by Kristin Kuchno; 1/6/25
The lawsuit alleging Fresno, Calif.-based Community Health System misused $1 billion in tax dollars has been paused until June while the health system and the nonprofit plaintiffs negotiate privately, Fresnoland reported Jan. 6. Community Health System, Cultiva La Salud and Fresno Building Healthy Communities jointly filed a stipulation on Dec. 23 requesting the court to stay the case, which Fresno County Superior Court Judge Kristi Culver Kapetan approved Dec. 30, according to Fresnoland. The stay halts legal proceedings. The two nonprofit organizations filed the lawsuit in August, alleging the health system misused $1 billion in tax dollars intended to serve low-income patients.