Berwick (Pa.) Hospital Center is in Chapter 11 bankruptcy after being plagued by staffing and financial challenges.
Berwick Hospital Company, which does business as Berwick Hospital Center, filed for bankruptcy protection Sept. 30. The move came after the abrupt closure of the hospital's emergency department Sept. 17 due to lack of staffing. The hospital's affiliated clinics closed in July.
Priyam Sharma, owner of the 90-bed hospital, is seeking to close the acute care hospital and transition it to a freestanding psychiatric facility. The state has granted a license to Berwick Hospital Center to operate as a 14-bed psychiatric facility, according to WNEP.
"We filed for Chapter 11 bankruptcy for Berwick Hospital so that it could continue to operate as a much-needed mental health hospital without the crippling legacy costs of when it was acquired as an acute care hospital," a lawyer representing Ms. Sharma told WNEP.
Berwick Hospital Center has more than $1 million in liabilities and less than $500,000 in estimated assets, according to bankruptcy documents.