North Carolina hospital forced into bankruptcy

Ayla Ellison (Twitter) - Print  | 

Washington County Hospital in Plymouth, N.C., is the subject of an involuntary bankruptcy petition, according to the Triangle Business Journal.

Three petitioners, who are seeking to collect money they're owed for medical supplies, medical transport services and salary payments, filed the involuntary Chapter 7 bankruptcy petition.

Washington County Hospital, which is operated by an affiliate of Kansas City, Mo.-based EmpowerHMS, missed payroll Feb. 8 and suspended all medical services Feb. 14. After services were halted, the Washington County Board of Commissioners held an emergency meeting to regain control of the hospital. The board also voted to approve the Chapter 7 bankruptcy petition as an unpaid creditor.

"Over the coming days and weeks, the county will continue to work closely with its legal counsel, other hospital creditors, and interested outside agencies and partners to pursue the appointment of a bankruptcy trustee with authority to exercise legal control over the assets and liabilities of the hospital," states a public service announcement on Washington County's website.

Board members said they will work with state and federal agencies to investigate the hospital's recent financial and operational issues. "Washington County is committed to facilitating the restoration of medical services at the hospital facility as quickly as possible," the announcement states.

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