In May, the medical group settled a medical malpractice lawsuit for $250,000. When the initial settlement payment of $100,000 was due, the medical group had difficulty making the payment as a result of the delayed receipt of a large payment due from an insurance company to the medical group for services renders.
After the complications associated with the first payment, the plaintiff's attorney asked for a garnishment of the company's bank accounts. The court granted the garnishment, which meant the medical group's bank accounts were frozen, according to the report.
The medical group filed for Chapter 11 bankruptcy on June 12 in an attempt to re-open its bank accounts and continue paying its staff.
The 50-employee medical group has offices in
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