Total Bankruptcy

A number of hospitals and medical centers are filing bankruptcy this year.  Some of the organizations will reorganize and layoff staff while others will simply shut their doors once their bankruptcy attorney files the bankruptcy petition.  Medicaid funding issues are often cited as one of the problems forcing the hospitals and medical centers to file bankruptcy.

• Kahuku Hospital in Hawaii will file for Chapter 7 bankruptcy and layoff up to 70 staff members at the end of December.
• Victory Memorial Hospital in Bay Ridge, New York filed for a Chapter 11 bankruptcy in November.  The 1000 employees will continue to work while the hospital reorganizes.
• The Schuster Group filed an Oklahoma bankruptcy petition recently but will continue to operate 6 hospitals in the state.  The company decided to file the Chapter 11 bankruptcy petition after it was unable to pay 380 staff members of the Moore Medical Center due to financial problems.