Saint Catherine Regional Hospital in Charlestown, Ind., filed for Chapter 11 bankruptcy last week — the second hospital in its county to declare bankruptcy and the sister hospital of another bankrupt facility in Pennsylvania, according to a News and Tribune report.
In April, Saint Catherine Regional Hospital's parent organization, Saint Catherine Hospital of Pennsylvania LLC, was ordered to convert its Chapter 11 bankruptcy case to Chapter 7, meaning a full liquidation of all assets. Sister organization Saint Catherine Medical Center Fountain Springs in Ashland, Pa., is already preparing for possible closure.
Saint Catherine Regional Hospital claimed more than $8.3 million in unpaid debts, according to the report. It is the second hospital in Clark County to have filed for Chapter 11 bankruptcy protection, as the physician-owned Kentuckiana Medical Center in Clarksville, Ind., filed for Chapter 11 in September 2010.
KMC has secured funding to bring it out of bankruptcy, but Saint Catherine Regional Hospital has not gotten that far. Charlestown Mayor Bob Hall said the city does not plan to buy the hospital, but he believes Saint Catherine's bankruptcy filing is taking the "right step, and it will allow them to restructure and stay open," according to the report.
In April, Saint Catherine Regional Hospital's parent organization, Saint Catherine Hospital of Pennsylvania LLC, was ordered to convert its Chapter 11 bankruptcy case to Chapter 7, meaning a full liquidation of all assets. Sister organization Saint Catherine Medical Center Fountain Springs in Ashland, Pa., is already preparing for possible closure.
Saint Catherine Regional Hospital claimed more than $8.3 million in unpaid debts, according to the report. It is the second hospital in Clark County to have filed for Chapter 11 bankruptcy protection, as the physician-owned Kentuckiana Medical Center in Clarksville, Ind., filed for Chapter 11 in September 2010.
KMC has secured funding to bring it out of bankruptcy, but Saint Catherine Regional Hospital has not gotten that far. Charlestown Mayor Bob Hall said the city does not plan to buy the hospital, but he believes Saint Catherine's bankruptcy filing is taking the "right step, and it will allow them to restructure and stay open," according to the report.
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