Connecticut's Johnson Memorial Medical Center Emerges From Bankruptcy

Johnson Memorial Medical Center in Stafford Sprints, Conn., has emerged from Chapter 11 bankruptcy with the help of an $8 million line of credit from Healthcare Finance Group, according to an HFG news release.

JMMC was previously known as Johnson Memorial Hospital, but rebranded as a medical center after emerging from bankruptcy.

The hospital filed for Chapter 11 protection in Nov. 2008. Under the reorganization plan, unsecured creditors, including the Pension Benefit Guarantee Corporation, will be paid at least $9.3 million over five years, of which about $1.5 million will be paid immediately.

"Emerging from bankruptcy without being sold or merged into another organization is an unusual outcome in the healthcare industry," Peter J. Betts, LFACHE, President and CEO of JMMC said in the release. "Now that we have exited Chapter 11, we have exciting plans for the future of healthcare services in North Central Connecticut and Western Massachusetts."

Read the HFG release on Johnson Memorial Medical Center.

Read more coverage on hospital bankruptcies:

-
California Hospital Exits Bankruptcy with Sale of $11M in Bonds

-
St. Vincent's Hospital Manhattan Files Bankruptcy Petition

- Downey Hospital in California Could Emerge From Bankruptcy Through Acquisition

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