RX for Hospital Bankruptcy
Saint Catherine Hospital of Pennsylvania LLC/Saint Catherine Medical Center Fountain Springs has been ordered to change their bankruptcy filing from Chapter 11 to Chapter 7 by a federal judge.
In an article on www.standardspeaker.com by Peter E. Bortner, the judge is quoted as saying, “’I’m going to waive any further notice and convert this to Chapter 7’ for the good of the community. I think it would expedite an eventual reprocessing of the assets.”
The judge also ordered that the hospital’s top 20 creditors be notified that the case has been changed to a Chapter 7 bankruptcy, on the recommendation of the bankruptcy trustee whose report stated that he did not think the business could be reorganized, in part due to debt of almost $6 million.
This action will lead to the closing of the 129-year-old hospital, although it may eventually reopen under new management. Pennsylvania’s Department of Health has revoked Saint Catherine’s license and its approximately 150 employees have been let go.
A solicitor for the Ringtown Municipal Authority and the boroughs of Ashland and Ringtown averred that his chief concern is the health of the people of the region the hospital serves. Four regional hospitals have reportedly been contacted about purchasing the hospital but, to date, none have shown interest.
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