Knox Clinic Corporation in Galesburg, Ill., will file for chapter 11 bankruptcy, according to a letter sent to employees on Tuesday, the Galesburg Register-Mail reported. The clinics at 834 N Seminary St. are connected to Galesburg Cottage Hospital, which lost its accreditation and was notified in December about losing Medicare and Medicaid payments. A letter from Cottage Hospital CEO Sanjay Sharma told employees the clinics, not the hospital, will file for chapter 11 bankruptcy, which will allow it to reorganize and preserve services. News of the hospital losing accreditation and Medicare and Medicaid payments broke Dec. 28. Medicare and Medicaid payments represented 72% of the hospital's net inpatient and outpatient revenue in 2020. Payments for Medicare and Medicaid patients at Cottage Hospital will continue for patients admitted before Jan. 15.
