Lockport, N.Y.-based Eastern Niagara Hospital has filed for Chapter 11 bankruptcy, according to The Buffalo News.
Despite shutting down its maternity unit, cutting jobs and moving the billing department back in-house to reduce its $10 million deficit, Eastern Niagara Hospital CEO Anne McCaffrey said the hospital can't become financially stable simply by cutting costs.
"We can no longer continue operating without the protection of a Chapter 11 filing. We must take this opportunity to address the legacy debt obligations that have escalated over the past six years," Ms. McCaffrey, told The Buffalo News.
The hospital had been counting on an affiliation with Kaleida Health System to help it remain stable, but the Buffalo, N.Y.-based system said it had not completed the deal because of Eastern Niagara's financial troubles.
The 134-bed hospital will continue to offer the services it does now through the reorganization.