Community Health Plan of the Rockies, Denver, a Medicaid HMO, filed for Chapter 11 bankruptcy protection, listing area hospitals as its largest creditors. The hospitals include Exempla Lutheran Medical Center, Wheat Ridge, Colo.; Memorial Hospital, Colorado Springs; Longmont United Hospital, Longmont; and University of Colorado Hospital and Children's Hospital, both in Denver. Community Health said it would continue to serve its 36,550 members while reorganizing. Its bankruptcy filing follows the abrupt and unexplained resignation earlier this month of company founder and CEO Lawrence Rachmel. The HMO's net worth dropped to $2.4 million as of Sept. 30. To do business in Colorado, it must show a net worth of $5.71 million and has until March to do so without penalty, regulators said. -- by Laura B. Benko
Colo. Medicaid HMO seeks bankruptcy protection
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