Gilbert (Ariz.) Hospital has filed for Chapter 11 bankruptcy due to several lingering financial problems, according to an Arizona Republic report.
An attorney with the hospital told The Republic that "a loss of financing, management changes, competition from other Gilbert hospitals and construction near the hospital" forced the physician-owned Gilbert Hospital to file for bankruptcy.
In its bankruptcy court filing, Gilbert Hospital officials said assets totaled less than $50,000, while liabilities were between $1 million and $10 million.
Timothy Johns, MD, an emergency medicine physician, is the founder and part owner of Gilbert Hospital, as well as two other troubled hospitals in the area: Florence (Ariz.) Hospital at Anthem, which filed for bankruptcy last March, and Peoria (Ariz.) Regional Medical Center, which has been stuck in the construction phase for at least two years.
According to the report, Dr. Johns wanted to create a network of physician-owned hospitals focused on emergency room care. Gilbert Hospital, which has 21 private ER beds, 16 inpatient beds and three intensive care unit rooms, had $20 million in cash in 2011. However, hospital investors have since sued Dr. Johns, saying that "financial mismanagement" and the transferring of funds from Gilbert Hospital to PRMC has led to massive losses.
More Articles on Hospital Bankruptcy:
Saint Francis Hospital Chooses Westchester Medical Center as Buyer
Casa Grande Regional Files for Bankruptcy, Signs Deal With Banner
Natchez Regional Medical Center Files for Bankruptcy Again