Last week, Cheboygan (Mich.) Memorial Hospital announced it filed for Chapter 11 bankruptcy protection.
CMH will continue its current operations as it undergoes restructuring and prepares for an eventual sale. A sale through the bankruptcy process is expected to take 60 to 90 days.
Although CMH was able to streamline several areas of its operations and reduced its workforce, saving roughly $3 million in annual savings, the hospital board decided to file for Chapter 11.
"Through this action, we are choosing to confront the challenges of a rapidly-changing healthcare environment that is further complicated by a national economic downturn," said Jamie McClurg, CMH board chair, in the news release. "We must address our costs and the structure of what we operate today and determine what level of healthcare services can and should be offered to the community that are of superior quality and are financially viable."
Flint, Mich.-based McLaren Health Care has agreed to provide CMH with an interim bridge loan, although the amount was not disclosed. Without this loan, CMH would have been forced to close, according to the news release.
CMH will continue its current operations as it undergoes restructuring and prepares for an eventual sale. A sale through the bankruptcy process is expected to take 60 to 90 days.
Although CMH was able to streamline several areas of its operations and reduced its workforce, saving roughly $3 million in annual savings, the hospital board decided to file for Chapter 11.
"Through this action, we are choosing to confront the challenges of a rapidly-changing healthcare environment that is further complicated by a national economic downturn," said Jamie McClurg, CMH board chair, in the news release. "We must address our costs and the structure of what we operate today and determine what level of healthcare services can and should be offered to the community that are of superior quality and are financially viable."
Flint, Mich.-based McLaren Health Care has agreed to provide CMH with an interim bridge loan, although the amount was not disclosed. Without this loan, CMH would have been forced to close, according to the news release.
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