A bankruptcy judge has approved the sale of Saint Francis Hospital in Poughkeepsie, N.Y., to Westchester Medical Center in Valhalla, N.Y., according to a Poughkeepsie Journal report.
In December, Saint Francis filed for Chapter 11 bankruptcy. The 333-bed hospital's debt has ballooned during the past few years, due in part to health IT costs and uncollectable bills. Health Quest, a three-hospital system based in LaGrangeville, N.Y., emerged as the primary suitor and offered to buy Saint Francis for $40 million shortly after the hospital filed for bankruptcy.
However, the 643-bed Westchester later became a competing buyer. Last week, Saint Francis executives filed paperwork with the bankruptcy court choosing Westchester instead of Health Quest.
In light of the news, Moody's Investors Service placed Westchester's "A3" credit rating on review for a potential downgrade, as the acquisition of a bankrupt facility could dampen the organization's financial position. Pending final documentation, the transaction will close May 9.
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