A U.S. Bankruptcy Court judge in Mississippi has approved an interim management contract with Lifebrite Hospital Group for Pioneer Community Hospital of Stokes County in Danbury, N.C., that will enable the hospital to remain in service, reports Winston-Salem Journal.
Lifebrite is a for-profit hospital management organization in Lilburn, Ga. Under the agreement, Lifebrite has agreed to make a one-time payment of $400,000 to Pioneer and assume $1.3 million in Medicare obligations, according to court documents obtained by Winston-Salem Journal.
"The agreement allows the hospital to remain open as a valuable provider of healthcare services to a needy community," said court documents.
The court will reconvene Aug. 9 to decide Lifebrite's offer to buy Pioneer's hospital assets in Stokes from Magee, Miss.-based Pioneer Health Services.
PHS filed for Chapter 11 bankruptcy protection March 31.