Pan American Hospital, Miami, filed for Chapter 11 bankruptcy protection in U.S. District Court there, saying it was suffering from the 1999 acquisition of 17 clinics from UnitedHealthcare for $65 million and a percentage of pending reimbursement. The 146-bed hospital closed the clinics in 2002 and terminated 1,200 employees. Pan American Executive Director Vicente Sanchez said the clinics proved unprofitable because UnitedHealthcare had stripped them of patients. A UnitedHealthcare spokesman declined to comment on the matter because it is the subject of an ongoing legal dispute between the insurer and Pan American. In its bankruptcy filing, Pan American reported liabilities of about $100 million and assets of $64 million. In addition to the cost of the clinics, malpractice insurance premiums and care for the uninsured have contributed to the hospital's problems, Sanchez said. "The core business of the hospital is not as good as it should be," Sanchez said, but he added, "We are extremely confident that we will be able to come out of this." -- by Patrick Reilly
Miami hospital files Chapter 11, blaming bad deal
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