Florida hospital files for bankruptcy

Campbellton-Graceville (Fla.) Hospital is filing for Chapter 11 bankruptcy protection to lower its high debt load, according to WHJG

The hospital will remain open during the bankruptcy process, but officials told employees at a meeting Friday some jobs will be cut and other positions will have their hours reduced, according to the report.

Campbellton-Graceville Hospital has struggled with its debt load for years. In April 2015, the hospital was on the verge of closing, but was able to keep its doors open after receiving a capital infusion from People's Choice Hospital in Oak Brook, Ill., a company that specializes in turning around financially distressed facilities.

In a statement to WHJG, the Campbellton-Graceville board of trustees said various factors pushed the hospital into bankruptcy, including pending litigation against People's Choice Hospital. Campbellton-Graceville has accused People's Choice of wrongfully misappropriating hospital funds and breaching its management agreement.   

"[T]he board made the decision to file for Chapter 11 to provide the hospital with the greatest opportunity to work through these ongoing issues and to preserve the hospital and as many of the jobs for the hard working and dedicated individuals that work at the hospital as possible," the hospital board said.

More articles on healthcare finance:

Advocate Health Care to make $200M in cuts amid financial pressure
CHS records $199M net loss, says divestiture spree is over
OIG: Mount Sinai Hospital overbilled Medicare by $41.9M

 

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months