Hawaii Medical Center Files for Second Chapter 11 Bankruptcy

Hawaii Medical Center, a health system in Ewa Beach, Hawaii, has filed for Chapter 11 bankruptcy, marking the second time the health system has had to do so, according to a Pacific Business News report.

Hawaii Medical Center, which includes Hawaii Medical Center East and Hawaii Medical Center West, has also submitted a reorganization plan to a U.S. Bankruptcy Court, in which Hawaii Medical Center would transfer ownership rights of its two hospitals to Honolulu, Hawaii-based St. Francis Healthcare System of Hawaii. The ownership transfer would balance Hawaii Medical Center's $40 million debt.

Under the proposed reorganization plan, MidCap Financial would also provide new financing for the health system's operation once it emerges from bankruptcy, according to the news report.

The first time Hawaii Medical Center filed for bankruptcy was in 2008, approximately 18 months after it acquired Hawaii Medical Centers East and West from St. Francis, according to the news report. Hawaii Medical Center still owes $19 million from its first reorganization plan.

Read the news report about Hawaii Medical Center.

Related Articles on Hospital Bankruptcy:
California's Doctor's Medical Center Posts $15.5M Loss, May Declare Bankruptcy Again
Massachusetts' Northern Berkshire Healthcare Files For Bankruptcy
Alabama's Randolph Medical Center to File for Bankruptcy

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