Monroe Hospital in Bloomington, Ind., has filed for bankruptcy reorganization, according to an Indianapolis Business Journal report.
The hospital's Chapter 11 bankruptcy petition states the facility has less than $50 million in assets and more than $100 million in liabilities. The hospital has experienced lower patient volumes as it competes with Indianapolis-based Indiana University Health's Bloomington hospital, according to the report.
Monroe Hospital also owes $3.1 million to the Bloomington physician practice Premier Healthcare, $694,000 to Bloomington Anesthesiologists, $304,000 to the Indiana Hospital Association and $61,000 to the accounting firm Katz Sapper Miller. Furthermore, the hospital is in default on both its facility lease with MPT Bloomington and its loan agreement with an MPT affiliate, according to the report.
MPT and the hospital's largest shareholder, Mechanicsburg, Pa.-based Vibra Healthcare, have entered into an offer letter with Ontario, Calif.-based Prime Healthcare Services concerning the potential sale of the hospital and leasing the facility to a Prime affiliate.
Indianapolis-based St. Vincent Health will attempt to maintain its existing clinical affiliation with the hospital, according to the report. St. Vincent and the hospital entered into a management agreement in 2012, under which St. Vincent managed operations for the hospital, including patient experience, physician relations and finance with the goal of increasing efficiency and reducing costs. The two organizations discontinued the management agreement last year, though they kept their clinical affiliations.
