Reopens as MidHudson Regional Hospital
St. Francis Hospital, the bankrupt New York hospital that closed days before its 100 year anniversary, was purchased by Westchester Medical Center on May 9, 2014. The newly named MidHudson Regional Hospital, Westchester Medical Center has retained 1800 members of its hospital staff including Art Nizza, the St. Francis CEO.
Although the hospital had approximately $50 million in debt, Westchester Medical offered up to $38.85 million to buy St. Francis Hospital assets, The Poughkeepsie Journal reported.
“We believe we have made an important investment in health care in the community as well as the entire region,” Westchester Medical president and CEO Michael Israel said.
The hospital will oversee debt collection, and will decide which contracts to keep or change. Creditors will be paid throughout the Summer, 2014; however, bankruptcy court dockets show that creditor hearings may continue through the end of the year.
Medical Records and Patient Billing Blamed for Bankruptcy
In 2012, gross revenues for St. Francis totaled nearly $150 million, but the hospital faced approximately $7.7 million in operating losses.
“The debtors’ medical records department and patient billing and collection department were understaffed and underperforming,” the hospital reported in its bankruptcy filing.
Leadership attempted to streamline records via a new comprehensive information system to streamline records, but the system was not successful in closing the growing debt.
The hospital pointed to the failed system implementation as a final straw before the bankruptcy filing. “The failed implementation, increasing operational costs and regulatory environment, and decreasing admittance levels, the debtors were forced to explore restructuring options.”
100 Years of Community Service
St. Francis Hospital opened in 1914 staffed by the Sisters of St Francis with only 40 beds. Before filing bankruptcy, the hospital was recognized for its state-of-the-art Center for Robotic Surgery, specialized Total Joint Rehabilitation Unit, and the hospital’s Level II Trauma center where more than 9,000 trauma victims are cared for each year, making it the busiest Level II Trauma Center in New York.
“Over the coming weeks and months, you will be hearing about the plans for MidHudson Regional Hospital of Westchester Medical Center and learning more about the people and programs that make it a wonderful organization,” Nizza said.
Several other hospitals have gone bankrupt in 2014. Click on the articles below to learn more.
Palm Drive Hospital Closes in Bankruptcy (Sonoma County, California)
Natchez Regional Hospital Files Bankruptcy (southwest Mississippi)
North Adams Hospital Files for Bankruptcy (western Massachusetts)
Gilbert Hospital Files for Chapter 11 Bankruptcy (Phoenix, Arizona)
Lake Shore Hospital Files for Bankruptcy (Irving, New York)