North Carolina hospital files for bankruptcy

Morehead Memorial Hospital, a 108-bed nonprofit hospital in Eden, N.C., filed for Chapter 11 bankruptcy Monday.

Documents filed in the case, which is pending in U.S. Bankruptcy Court for the Middle District of North Carolina, give a glimpse of the financial challenges the hospital is facing.

In its bankruptcy petition, the hospital listed its assets as between $10 million and $50 million and its liabilities as in the same range. Morehead Memorial said it has more than 5,000 creditors. The hospital's largest unsecured creditor is San Diego-based medical device company Nuvasive, which has a $641,629 claim.

Morehead Memorial said the bankruptcy filing will allow it to restructure its debt and improve its chances of finding a strategic partner.

"Reorganization will allow Morehead Hospital the opportunity to align its operations strategically to meet the health care needs of our community," said Eugene Russell, chairman of Morehead's board of trustees.

The hospital said it will continue to operate as normal during the bankruptcy process.

In addition to the general acute care hospital, Morehead Memorial operates a 121-bed skilled nursing facility and several medical office buildings.

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