Executives with the struggling St. Michael's Medical Center in Newark, N.J., filed for bankruptcy protection on Monday, with officials blaming uncertainties surrounding the state's long review of the proposed sale of the facility, NJ.com reported yesterday. "We've done everything the state has asked us to do," said David Ricci, the hospital's CEO. "After two and a half years, it would appear we're no further along than when we started." The bankruptcy move was done so the hospital will continue to have enough money on hand until the expected sale to Prime Healthcare Services, a for-profit company out of California. Employees and patients should not notice any change, Ricci said. "The state remains committed to the health and well-being of Newark residents," said Donna Leusner, spokeswoman for the N.J.Department of Health. "The department has taken a reasonable and deliberative approach as it always does with certificate of need applications. Having completed multiple rounds of questions, it remains under review." She declined to provide any timetable for when that review would be concluded. Read more.
For more on the bankruptcy proceedings related to hospital facilities, be sure to pick up a copy of ABI’s Health Care Insolvency Manual, Third Edition.