Natchez (Miss.) Regional Medical Center intends to file for Chapter 9 bankruptcy, marking the second bankruptcy process in the past five years for the public-owned hospital.
According to a Natchez Democrat report, Natchez Regional CFO Charles Mock said the liabilities of the 179-bed hospital exceed its assets by $3 million. Declining reimbursements from Medicare and Medicaid have contributed heavily to the hospital's financial problems.
Despite the impending bankruptcy filing, hospital officials believe the facility, owned by Adams County, will be sold. Natchez Regional has reportedly fielded several offers from prospective bidders, although few details have been disclosed.
Natchez Regional filed for Chapter 9 bankruptcy in 2009 after issues arose with the hospital's former management company, Brentwood, Tenn.-based Quorum Health Resources. The hospital later sued QHR, as well as the former CEO and CFO provided by the management company, for $46 million in damages for negligence, breach of fiduciary duties, fraud and other wrongful acts allegedly committed in 2006 and 2007.
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