Kentucky Hospital Seeking New Owners
After years of operation, under millions of dollars in debt, New Horizons Medical Center in Owenton, Kentucky filed for Chapter 11 bankruptcy protection on May 29, 2015.
New Horizons Medical Center is located in Owen County and serves the neighboring counties of Gallatin and Carrol as well. The Kentucky hospital has been in operation since 1951.
Not the First Financial Struggle for the Hospital
In 2001, the hospital had gone through a rough time financially, and was sold to pharmacist Bernard Poe. He purchased the hospital with over $5.4 million in loans.
Poe is currently the CEO of New Horizons Medical Center and reported to bankruptcy court that the hospital still owes $4.33 million to its creditors.
Poe: Bankruptcy is Best for the Medical Center
With creditors being owed large sums of money, in one instance in the millions of dollars, Poe feels that filing for Chapter 11 bankruptcy protection is the smartest and safest step forward for the hospital.
“Market conditions indicate that the best way to sell its assets free and clear and to obtain the greatest recovery for the benefit of all creditors would be to utilize the Chapter 11 protections and 363 sale process,” Poe said in an affidavit handed to the bankruptcy court.
Marshall Estate is listed as the largest creditor at $5 million. Number two on the list of creditors is Acute Care based out of Ankeny, Iowa. They claim they’re owed $900,000. Both companies claim that the amounts are litigation debts. Both amounts are currently being disputed by New Horizons Medical Center.
Hospital Will Continue to Operate
During the bankruptcy proceedings, New Horizons Medical Center will stay open. They are currently seeking potential buyers and investors to take over the hospital. The hospital has reported that they have received interest from buyers and will continue the talks with interested parties.
New Horizons Medical Center is a fully equipped hospital. Services include, among others, a fully operational emergency room, surgical services and a large physical therapy department. The main area that New Horizons Medical Center serves is Owenton, Kentucky which has a population of slightly more than 10,500 residents.