North Oakland Medical Centers, Pontiac, Mich., is seeking Chapter 11 bankruptcy protection and is looking to be acquired by members of the Oakland Physicians Medical Center in an almost $9 million deal, according to Crains Detroit Business, a sister publication of Modern Physician.
North Oakland includes the 166-bed institution formerly known as Pontiac General Hospital and the Waterford Ambulatory Care Center. Oakland Physicians includes a physician group and Flint, Mich.-based McLaren Health Care Corp. The physician group, led by Rochester Hills urologist Anil Kumar, will assemble its own management team to take over the hospital while the current leadership takes it though bankruptcy court, Crains Detroit Business reported.
Oakland Physicians will pay the City of Pontiac $2 million of the $2.3 million owed by North Oakland, $3.7 million for bonds the hospital has defaulted on, and $3 million to the hospital to acquire various assets.