They are accusing the hospital operator of siphoning $1 billion in public funds intended for Community Regional Medical Center in downtown Fresno to instead fund upgrades at Clovis Community.
Cultiva La Salud and Fresno Building Healthy Communities filed the lawsuit in Fresno County Superior Court Wednesday morning.
The complaint alleges Community Health System misused funds received under two state programs for hospitals serving Medi-Cal and low-income patients.
The complaint asks for a court order demanding the health system stop misappropriating public dollars and begin dedicating funds to improve CRMC facilities downtown.
Community Health System could not go into great detail about the lawsuit due to pending litigation but did release a statement saying in part:
"Community Health System is deeply committed to serving Central Valley patients, particularly those insured by Medi-Cal, so it's safe to say we are extremely disappointed in this baseless lawsuit."