With a mere four days' cash on hand and no way to meet payroll, Memorial Medical Center at South Amboy (N.J.) began shutting patient-care operations July 30.
As the closure continued last week, the hospital's board of trustees considered whether to liquidate operations or attempt a reorganization.
Memorial lost $4.5 million on $28 million in revenues in 1998. Though it carries no long-term debt, it owes vendors about $4 million and has a
$2 million line of credit with a bank.
Before closing, the hospital saw roughly 65 patients per day, 80% of whom were covered by Medicare.
Chief Executive Officer Catherine Fickes said reimbursement issues played a hand in the closure, as did other issues. She is an employee of Intensive Resource Group, the turnaround management arm of Brentwood, Tenn.-based Quorum Health Group.