The national credit crunch has killed off a struggling Michigan hospital that had been slated for a for-profit resurrection led by physician investors.
North Oakland Medical Centers, a 137-bed hospital in Pontiac, filed for Chapter 11 bankruptcy protection in August as part of a deal to sell the hospital to a group incorporated as Oakland Physicians Medical Center, involving about 100 physicians, with help from Flint, Mich.-based McLaren Health Care Corp.
With the economy, we were unable to get any financing and couldnt get a line of credit, said Anil Kumar, M.D., a urologist who helped put together the proposed deal. We tried very hard.
Kumar referred questions regarding details of the hospitals closure to President and Chief Executive Officer John Graham, who did not respond by deadline. Graham, who joined North Oakland in 2006, has accepted a new position as president and CEO of 268-bed St. Mary's of Michigan, an Ascension Health hospital in Saginaw, Mich. St. Mary's said Graham would begin in late October. A spokesman for Michigan Council 25 of the American Federation of State, County and Municipal Employees said the union expected the hospital to close Oct. 28. -- by Gregg Blesch