A physician-owned hospital on Chicago's south side, which posted a $1.6 million profit last year, filed for bankruptcy and closed last week.
The for-profit hospital, 200-bed Doctors Hospital of Hyde Park, is the latest in a string of for-profit hospitals and nursing homes to seek bankruptcy protection (See related story, p. 6).
In its voluntary Chapter 11 bankruptcy petition, Doctors Hospital listed almost $24 million in assets and more than
$81 million in liabilities as of Feb. 29. The hospital filed its bankruptcy petition April 17 in U.S. Bankruptcy Court in Chicago.
The hospital, which had $59 million in outstanding loans, posted a profit for the 12-month period ended Sept. 30, 1999, according to the Illinois Health Facilities Planning Board.
The hospital is owned by James Desnick, M.D., a controversial Chicago ophthamologist, who owns all of the hospital's 100,000 shares of common stock, according to the bankruptcy filing. Desnick brought the hospital out of bankruptcy in 1992 when he bought it for $2.4 million.
Between 1984 and 1994, Desnick ran a network of eye clinics. He sold them in the face of a federal probe of his business practices.
Last year, Doctors Hospital agreed to pay a $4.5