St. Vincent Catholic Medical Centers, New York, has filed for Chapter 11 bankruptcy, seeking court protection from its creditors for $1.1 billion in debt. The system has $971 million in assets, a spokeswoman said. Officials at the seven-hospital system said heavy operating losses in the last several years spurred a turnaround plan in 2004, but the effort was incorrectly based on a $60 million overstatement of the prior year's revenues. The overstated accounts receivable contributed to a $153 million operating loss in 2004, officials said. The bankruptcy petition does not include three of the system's four nursing homes nor its St. Vincent's Midtown Hospital because each operates as a separate corporate entity. Officials stressed that all of the hospitals will remain open and operating as usual. Officials said the turnaround process is intended to give the system the time and means to restructure its debt, operations and finances and realign its costs and debt with revenue. -- by Cinda Becker
St. Vincent files for bankruptcy with $1.1 billion in debt
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