Michigan physician-owned hospital files for bankruptcy

Doctors Hospital of Michigan in Pontiac has filed for chapter 11 bankruptcy protection, according to a Crain's Detroit Business report.

The physician-owned hospital has been struggling financially for years. The hospital posted a loss of $11.9 million on net patient revenue of $63.8 million in 2013, the most recent year financial information is available, according to the report.

Doctors Hospital has tried to reduce its expenses in recent years by closing its emergency department in October 2013 and laying off 40 of its estimated 300 employees earlier this year. However, the hospital has continued to lose money and is now facing a lawsuit filed by several physician investors and the Shree Investment Group for unpaid loans of approximately $2 million, according to the report.

In the hospital's bankruptcy petition, it listed debts between $10 million and $50 million, according to a Detroit Free Press report.

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