Creditors Could Drive Specialty Hospital of Washington Facilities to Bankruptcy

Six creditors have taken legal action seeking to force two Specialty Hospital of Washington (D.C.) facilities into bankruptcy, according to a report from The Washington Post.

The creditors have petitioned a Delaware bankruptcy court to make Specialty Hospital of Washington Capitol Hill and Specialty Hospital of Washington Hadley file for Chapter 11 bankruptcy, according to the report.

Specialty Hospital of Washington — a subsidiary of Portsmouth, N.H.-based Specialty Hospitals of America — has $2.7 million in unpaid bills for both facilities, according to the court filing. The creditors include Capitol Hill Group, the Capitol Hill facility's landlord, which says Specialty owes $1.7 million in rent, taxes and utility bills, according to the report.

If the petition is granted, other creditors will likely take the same course of action. The D.C. government alleges Specialty owes as much as $23 million to compensate for Medicaid overpayments, and electric service provider Pepco has sued Specialty over unpaid bills, according to the report.

The court hasn't yet ruled on the creditors' petition, and Lisa Proctor, a spokeswoman for Specialty, told the Post the company is not in bankruptcy and continues to work with its key stakeholders.

More Articles on Hospital Finances:
Palm Drive Hospital Files for Bankruptcy, Braces for Closure
Northern Berkshire Healthcare Files for Chapter 7 Bankruptcy
7 Hospital Bankruptcies and Closures in 2014 Thus Far 


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