Knox County Hospital, Barbourville, Ky., has filed for Chapter 11 bankruptcy protection, listing almost $24 million in debt, interim Administrator Danny Garrett said. The 58-bed, not-for-profit hospital opened in 2001 at a cost of about $6 million more than its original $12 million price tag. Garrett said the decision to seek bankruptcy protection was due in large part to cost overruns during construction. Among the debts is $3.6 million to Knox County for construction loans. Garrett said the hospital, privately owned by the Knox County Hospital Operating Corp., is seeking a sale and has received interest from several potential purchasers, including Knox County and for-profit hospital companies. The bankruptcy petition was filed Monday in U.S. Bankruptcy Court in Lexington, Ky. -- by Michael Romano
Ky. hospital seeks bankruptcy, cites construction costs
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