Casa Grande Regional Medical Center has filed for chapter 11 bankruptcy to execute an $87 million sale to another hospital operator, Dow Jones Daily Bankruptcy Review reported today. The 177-bed, not-for-profit Arizona hospital has seen revenue fall drastically as reimbursement rates for Arizona's Medicaid program were reduced, it said on Tuesday in court documents. These rate reductions caused revenue to fall by $10 million per year, threatening the hospital's ability to service its $65 million in bond obligations and to continue to operate, it said. The sale to Banner Health and Regional Care Services Corp., an operator of 24 nonprofit hospitals in seven states including Arizona, California and Nebraska, will allow Casa Grande to pay allowed claims in full.
