Five-hospital Doctors Community Healthcare Corp., Scottsdale, Ariz., said it has secured $60 million debtor-in-possession financing from GE Capital, and GE will take over the company's $14 million mortgage on 286-bed Michael Reese Hospital and Medical Center, Chicago. The deal must be approved by bankruptcy court. Doctors Community CEO Paul Tuft said the money would be used for capital improvements, new equipment and facility repairs. Meanwhile, corporate staff will move to a less-expensive headquarters as part of cost-saving measures imposed by the court. Doctors Community filed for Chapter 11 bankruptcy protection last November shortly after the collapse of its chief lender, National Century Financial Enterprises, Dublin, Ohio. Doctors Community's options including selling its hospitals individually or collectively, Tuft said, and he confirmed that his executives have spoken with Vanguard Health System, Nashville, about purchasing Michael Reese. Vanguard, whose 15 hospitals include two in Chicago, is negotiating to purchase 339-bed Mercy Hospital and Medical Center, near by Michael Reese, sources said. -- by Mark Taylor
Doctors Community secures $60 million financing
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