When the organization announced the filing on Feb. 4, administrators said it would continue operations while it reorganized assets and look at "structural options." It anticipated the process would take up to 90 days.
However, on Wednesday, the end-of-life care service announced it would close and that its patients would be cared for by Scripps Health.
San Diego Hospice, one of the largest community-owned, not-for-profit hospices in the country, will likely end operations sometime in the next 60 to 90 days.
“This is obviously a difficult decision for all of us associated with San Diego Hospice. The plan we have put forward will allow us to take immediate steps to stop incurring debt, which increases every day we remain in operation,” Kathleen Pacurar, CEO of San Diego Hospice said in a written release.
Hospice attorneys were expected to file the first set of motions in U.S. Bankruptcy Court Wednesday to begin the process.
Scripps Health will purchase the hospice's building and enough employees to care for current patients. The money from the purchase will help the hospice pay off debt and manage any further debt incurred over the next two to three months according to hospice officials.
"We believe this is the best course for our patients and their families, and for San Diego Hospice,” Pacurar said.
According to the Chapter 11 filing, the organization's creditors include Wells Fargo Bank, which the organization owes $4 million, and Price Charities.
Last year, two high-level San Diego Hospice employees resigned in the midst of a years-long Medicare audit. The results of that audit were still unknown.