Another Detroit hospital could reopen by year-end as a result of a federal bankruptcy judge's approval of the sale of 101-bed Doctors Hospital for nearly $2 million to a Texas healthcare company.
Leland Medical Centers of Dallas has agreed to purchase the assets for $1.9 million during the next 10 years, according to Michael Baum, one of the attorneys representing the hospital. Doctors Hospital would be the second Detroit facility to announce a reopening in the last month.
But another acute-care hospital isn't good news for Detroit's healthcare climate, according to at least one local hospital executive.
"We've got 10 to 15 more hospitals in the region than what we need," said Jim Kenney, president and chief executive officer of the Greater Detroit Area Health Council. "It's not going to be helped along (by) reopening acute-care beds."
In 1991, Doctors Hospital filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Act, and it closed in 1992.
Attorneys representing Leland Medical Centers didn't return calls seeking information about their plans for the hospital, which operated as a not-for-profit organization before filing for bankruptcy protection.
Doctors Hospital lost more than $2.2 million on net revenue of $11.1 million in 1991, according to the latest financial information available from HCIA, a Baltimore-based company specializing in healthcare financial research.
Last month, a group of Detroit-based physicians bought The Greater Detroit Hospital-Medical Centers. That 288-bed hospital, formerly known as North Detroit General Hospital, opened April 1 after being closed for almost two years (March 14, p. 16).