The doors of the 129-year-old Saint Catherine Medical Center Fountain Springs in Ashland, Pa., are about to be shuttered after a federal judge approved a measure that would liquidate the hospital's assets and result in closure, according to a Republican Herald report.
U.S. Bankruptcy Judge John Thomas ordered that Saint Catherine Hospital of Pennsylvania LLC, the owner of Saint Catherine Medical Center Fountain Springs, convert the case from a Chapter 11 bankruptcy to Chapter 7. Chapter 11 allows hospitals to reorganize their businesses, but Chapter 7 bankruptcies involve the full liquidation of all assets.
William Schwab, JD, was the hospital's bankruptcy trustee, and he recommended the case be converted to a Chapter 7 bankruptcy because the hospital has more than $5.8 million of debt, according to the report. In addition, the hospital only had $45,000 in cash on hand.
Pennsylvania's Department of Health has revoked the hospital's license to operate, and roughly 150 employees have been let go, according to the report. Saint Catherine Medical Center Fountain Springs could reopen, but it would have to be under new management. Mr. Schwab said he contacted four local hospital groups about buying the hospital, but none showed interest.
U.S. Bankruptcy Judge John Thomas ordered that Saint Catherine Hospital of Pennsylvania LLC, the owner of Saint Catherine Medical Center Fountain Springs, convert the case from a Chapter 11 bankruptcy to Chapter 7. Chapter 11 allows hospitals to reorganize their businesses, but Chapter 7 bankruptcies involve the full liquidation of all assets.
William Schwab, JD, was the hospital's bankruptcy trustee, and he recommended the case be converted to a Chapter 7 bankruptcy because the hospital has more than $5.8 million of debt, according to the report. In addition, the hospital only had $45,000 in cash on hand.
Pennsylvania's Department of Health has revoked the hospital's license to operate, and roughly 150 employees have been let go, according to the report. Saint Catherine Medical Center Fountain Springs could reopen, but it would have to be under new management. Mr. Schwab said he contacted four local hospital groups about buying the hospital, but none showed interest.
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