Kentuckiana Medical Center, a physician-owned hospital in Clarksville, Ind., is close to stepping out of bankruptcy as KMC lawyers said a guarantor will provide $37 million in financing to keep the facility open, according to a Courier-Journal report.
The lender, Dylan Jagger Investment Co., will pay off the hospital's debt, which includes $16 million in general debt, $5 million in building completion costs and other operating expenses, according to the report. Physician owners will also provide an additional $3.9 million in funding.
Previously, private equity firm Argenta Group was going to finance KMC through the Clark County government. Dylan Jagger could still go through the county government, but if the local government decides to not participate, Dylan Jagger could charge a higher interest rate, according to the report.
The 26-bed KMC first filed for Chapter 11 bankruptcy in Sept. 2010, roughly 13 months after it opened.
The lender, Dylan Jagger Investment Co., will pay off the hospital's debt, which includes $16 million in general debt, $5 million in building completion costs and other operating expenses, according to the report. Physician owners will also provide an additional $3.9 million in funding.
Previously, private equity firm Argenta Group was going to finance KMC through the Clark County government. Dylan Jagger could still go through the county government, but if the local government decides to not participate, Dylan Jagger could charge a higher interest rate, according to the report.
The 26-bed KMC first filed for Chapter 11 bankruptcy in Sept. 2010, roughly 13 months after it opened.
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