Ms. Cusack-McGuirk said KeyBank is calling in a pair of loans worth $22.2 million, a move that she says led HSBC and Assured Guaranty to call in loans that are part of the same debt package. Bankruptcy and mass layoffs are possibilities if hospital officials are unable to get the banks to reverse course, Ms. Cusasck-McGuirk told the Times Herald-Report.
Though KeyBank can’t discuss the specifics of the hospital’s case because of client confidentiality, a spokesperson told the Times Herald-Report that “many of the facts as presented are inaccurate.” The bank said it’s working with the hospital to reach a resolution.
The financial institutions called in the loans after the hospital slipped into “technical default,” Ms. Cusack-McGuirk said. In recent years, the hospital entered a forbearance because it violated its liquidity and cash flow covenants, according to the report.
Read the full Times Herald-Record article here.
More articles on healthcare finance:
State-by-state breakdown of 134 rural hospital closures
32 hospitals have filed for bankruptcy this year
Houston physician sentenced to prison for $17M billing fraud
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
