On Tuesday, Mississippi Gov. Phil Bryant signed legislation that would allow Natchez (Miss.) Regional Medical Center to file for Chapter 9 bankruptcy.
According to House Bill 1449, the state authorized Natchez Regional to file for bankruptcy. Because the 179-bed hospital is country-owned, legislation approving the bankruptcy filing was needed.
Natchez Regional announced its intent to file for bankruptcy last month. It will be the second time in the past five years the hospital has gone through the process. After reorganization is approved, Natchez Regional is likely to sell and has reportedly fielded several offers from prospective bidders, although few details have been disclosed.
Last month, Natchez Regional CFO Charles Mock said the liabilities of the hospital exceed its assets by $3 million. Declining reimbursements from Medicare and Medicaid have contributed heavily to the hospital's financial problems.
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