Unpaid Patient Bills Blamed for Growing Debt
Casa Grande Regional Medical Center filed for Chapter 11 bankruptcy in an effort to fulfill the purchase agreement it has made with Phoenix-based Banner Health. The Arizona hospital which is located 60 miles south of Phoenix cited unpaid patient bills as a reason for the sale to Banner.
According to a report filed by the Associated Press, the Banner Health acquisition agreement required the bankruptcy filing. Casa Grande Regional Medical Center CEO Rona Curphy said that it will help ensure that the acquisition moves forward. Mrs. Curphy said she anticipates that all debts will be paid in full, and that Banner intends to keep all hospital employees who pass background checks.
The two groups are meeting and expected the bankruptcy court to approve the plan by May, 2014. Banner signed a letter of intent in December, 2013 and has signed an asset purchase agreement.
Casa Grande Becomes Banner’s 24th Hospital
Banner Health will provide interim funding to Casa Grande Regional Medical Center until the acquisition is finalized, at which point it would become Banner’s 24th acute-care hospital.
“The goal is to ensure that there is as little disruption as possible, and I have committed to our staff, doctors and community that I will keep them informed of developments every step of the way,” Curphy said. “We are confident that activities associated with this acquisition will not disrupt the outstanding patient care that we will continue to provide.”
The 177-bed Casa Grande Regional Medical Center filed for bankruptcy with $13.4 million in operating losses in 2013. In addition to unpaid bills, hospital officials blamed a declining volume of patients as the reason for its fiscal problems.
Banner also plans to expand the services Casa Grande Regional Medical Center offers, Curphy said. Possible changes may include upgrading the nursery, getting the emergency room trauma certified and incorporating tele-health services, such as psychiatry services, to the hospital’s offerings.
Several other hospitals have gone bankrupt in 2014. Click on the articles below to learn more.
Gilbert Hospital Files for Chapter 11 Bankruptcy (Phoenix, Arizona)
Long Beach Medical Center Files Bankruptcy (Long Island, NY)
Natchez Regional Hospital Files Bankruptcy (Southwest Mississippi)
Nicholas County Hospital Closes Amidst Bankruptcy (Carlisle, Kentucky)
North Adams Hospital Files for Bankruptcy (Western Massachusetts)
Palm Drive Hospital Closes in Bankruptcy (Sonoma County, California)
St. Francis Hospital Closes in Bankruptcy (Poughkeepsie, NY)