Pa. hospital files for Chapter 11
Aliquippa (Pa.) Community Hospital filed for Chapter 11 bankruptcy protection, 18 months after the community won the financially beleaguered hospital back from 17-hospital UPMC Health System, Pittsburgh. Hospital President Fred Hyde, M.D., said the voluntary filing in U.S. Bankruptcy Court in Pittsburgh was in response to the hospital's inability to close a $3 million budget gap but would not disrupt operations or lead to major layoffs. The hospital likely will file a reorganization plan in early December, Hyde said.
Neoforma back on NASDAQ
Neoforma resumed trading under its NEOF symbol after the NASDAQ listing qualifications department confirmed that the company is in compliance with all requirements. The electronic commerce company was hit with a delisting notification after it announced it would delay filing its second-quarter financial statement because of accounting questions. The questions subsequently were resolved. Neoforma is the e-commerce partner of Novation, the joint group purchasing organization of VHA and University HealthSystem Consortium.
Healthcare gets tobacco money
Healthcare services such as Medicaid received 25% of the $11.9 billion of tobacco settlement funds allocated in fiscal 2002, according to the National Conference of State Legislatures. Another 24% was used by states and other governments to secure bonds issued for capital or healthcare projects or budget shortfalls, according to the report. Of the remainder, 18% funded endowments and budget reserves; 6% went to long-term care; and 4% was devoted to tobacco-use prevention. The 1998 Master Settlement Agreement with the tobacco industry brought 46 states a total of approximately $206 billion over 25 years. An additional four states reached separate agreements worth about $40 billion.
N.J. hospital converted to for-profit
A Salem County (N.J.) Superior Court judge approved the sale of 108-bed Memorial Hospital of Salem County to Community Health Systems, Brentwood, Tenn., marking the first conversion of a New Jersey hospital to for-profit status under the state's 2000 conversion law. Community Health agreed to pay about $35 million for the hospital, according to filings with state regulators. The state attorney general and the state Department of Health and Senior Services previously approved the deal. It is expected to close later this month, said Tom McGoff, the hospital's interim president and chief executive officer. At closing, a healthcare charitable foundation is set to receive $14.6 million of the proceeds, McGoff said. The deal will bring Community Health's total number of hospitals to 62.