Doctors Hospital, Springfield, Ill., said its bankruptcy reorganization plan had failed and last week transferred patients to neighboring hospitals in preparation for a shutdown. The 63-bed hospital, owned by a partnership of more than 55 local doctors and International Health Systems, filed for Chapter 11 bankruptcy protection in April. The partnership purchased the hospital in 1987. Peoria bankruptcy attorney Gary Rafool, who represents the hospital, said it is operating with a skeleton crew. Kent Cochran, a vice president of International Health Systems, said declining reimbursement, physician practice patterns and a cash-flow crisis sparked by slow Medicaid reimbursement decided the hospital's fate. "We were left with no margin of error and couldn't pay our vendors," Cochran said. He said investors and employees are hopeful someone will buy the facility and reopen it. -- by Mark Taylor
Bankrupt Ill. hospital to close its doors
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