Executives at Parkview Hospital, Toledo, Ohio's only osteopathic hospital, said they expect to close the facility in six to 12 weeks.
President and Chief Executive Officer Joseph W. Ferguson said the 114-bed hospital will transfer its physician training programs to St. Vincent Medical Center, Toledo, by the beginning of this month. No decision was made on Parkview's other assets.
The hospital's occupancy rate plunged to 29% last year as managed care consumed 45% of the market, Mr. Ferguson said. "Parkview, being the smallest hospital in town, has been leveraged out of those contracts," he said.
Last week, Standard and Poor's Corp. lowered the rating on Parkview's $11.2 million in revenue bonds to CCC from C and placed it on CreditWatch.
The New York-based credit-rating agency said it's likely that Parkview will need to invade its debt-service reserve to continue making monthly payments to the bond trustee. Those payments go toward Parkview's semiannual payments to bondholders. The reserve fund contains $1.2 million, enough to make the next two bondholder payments this fall and next spring.
In 1992, the last year for which figures were available, Parkview lost $1.4 million and reported a net worth of -$2.8 million.