Ouachita County Medical Center in Camden, Ark., plans to file for Chapter 11 bankruptcy reorganization at the end of January or early February, CEO Glenda Harper confirmed to Becker’s.
The decision stems from longstanding financial challenges, including about $8 million in debt, Arkansas Business reported.
“Most of our primary vendors have cut us off, making it necessary for us to go to secondary vendors who often charge more for the same products and take longer to deliver them,” Ms. Harper wrote in an email. “In short, everything about that amount of debt causes increased hardship. However, I have been able to get some of our vendors to allow us to purchase on a prepay basis; that has kept us in business.”
The hospital also closed its labor and delivery unit earlier this month, citing a low number of births and unprofitability.
To create new revenue streams, the hospital is preparing to launch additional services, including a new pulmonary rehabilitation program and a three-bed sleep lab.
According to Arkansas Business, the hospital has also applied with CMS to become a rural emergency hospital — a designation for facilities that provide 24/7 emergency care without maintaining inpatient beds.
“I do think [filing for bankruptcy is a] positive move for the hospital in that it will allow us to move forward and serve our community,” Ms. Harper said in a phone interview earlier this month.
