The implementation of a new IT system at Saint Francis Hospital in Poughkeepsie, N.Y., is partially responsible for the hospital's $50 million of debt and Tuesday's bankruptcy filing, according to an exclusive report in the Poughkeepsie Journal.
In September 2012, the hospital implemented a Meditech product that provided organization-wide electronic management, including clinical and financial operations, according to the report.
The implementation required a significant capital outlay, but what began to compound the financial strain were problems with the system's billing operations. Between October 2012 and early 2013, "tens of millions of dollars" worth of bills became uncollectable because of delays associated with the new system, Saint Francis CEO Art Rizza told the Poughkeepsie Journal.
Hospital officials only recently realized the hospital could not recover from the financial damage, said Mr. Rizza. Saint Francis currently owes several creditors a total of upwards of $50 million, according to the report.
Pending the bankruptcy process, the hospital will be acquired by Health Quest, a three-hospital system based in LaGrangeville, N.Y.
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