Century City Doctors Hospital in Los Angeles said it will file for Chapter 7 bankruptcy and close its doors on Aug. 29. Financial difficulties related to the hospitals inability to sell, obtain new financing, or receive extensions or renewals of existing financing, led to the filing, according to a statement from Century City Doctors Hospital on Friday, Aug. 22, the same day the hospital closed its emergency department and canceled all elective surgeries. In the next week to 10 days, Century City will begin transferring all patients who cannot be discharged to other area hospitals.
During the last three years, CCDH has been faced with substantially higher costs than projected to build our facility, delays in opening the hospital in 2006 which put a drain on working capital, problems with our operating systems, and, most significantly, a longer-than-expected timeframe to reach a viable consensus level, Pat Wolfram, the hospitals interim chief executive officer since March, said in the statement. Wolfram also cited reimbursement pressures and losses incurred during the hospitals start-up phase as other considerable problems.
In the Chapter 7 bankruptcy process, Century City Doctors Hospital will ask the court to appoint a trustee to collect and liquidate assets to pay creditors, according to the hospital. -- by Jessica Zigmond
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.