Two troubled rural hospitals may turn to U.S. bankruptcy courts for relief.
Silver Valley Medical Center, in the tiny mining town of Silverton, Idaho, shut its doors Oct. 13, according to the Idaho Department of Health and Welfare. It is seeking protection from creditors.
The hospital is nearly $1 million in debt, the Associated Press reported.
The hospital had been operated by the East Shoshone Hospital District, which on Oct. 14 filed for Chapter 9 reorganization in Coeur D'Alene, Idaho. Chapter 9 of the U.S. Bankruptcy Code allows municipalities and taxing districts to seek relief from creditors.
Meanwhile, Logan (W.Va.) General Hospital was said to be considering a Chapter 11 bankruptcy filing to avoid being turned over to a court-appointed receiver. Earlier this year, the 132-bed hospital began missing payments on $31.4 million of bonds, prompting action by the Bank of New York, the trustee for the bonds (June 29, p. 164).
Silver Valley, licensed to operate 23 acute-care and eight long-term-care beds, is located about eight miles from Shoshone Medical Center in Kellogg, Idaho. Its law firm, Elsaesser Jarzabek Anderson & Marks, released this statement: "The board of trustees believes that Chapter 9 will enable the hospital district to reorganize and provide a successful resolution of creditors' claims in the best interests of the taxpayers of the district."
In Charleston, W.Va., U.S. District Judge Charles Haden recently agreed to place Logan General in receivership. A trustee has yet to be named.
Logan General Hospital President C. David Morrison did not return calls seeking comment at deadline.