Kentuckiana Medical Center, a for-profit, physician-owned 36-bed acute-care hospital in Clarksville, Ind., filed for Chapter 11 protection in U.S. Bankruptcy Court in New Albany, Ind.
Doc-owned Kentuckiana files Chapter 11
According to a document included in the filing, medical center board members unanimously voted to enter Chapter 11 during a special meeting held via teleconference on Sept. 17. Inability to achieve “a mutually satisfactory agreement” with First Tennessee Bank—which froze the hospital's account on Sept. 8—was cited as the reason. The hospital filed motions to allow the use of its cash collateral to continue operation and to compel utility companies to maintain service to the facility.
The institution's largest unsecured creditors are KMC Real Estate Investors, Louisville, Ky.; Cardiovascular Hospitals of America, Wichita, Kan.; and Cerner Corp., Kansas City, Mo. They are owed $2.7 million, $1.8 million, and almost $897,000 respectively. Cardiovascular Hospitals of America owns 49% of the hospital.
The facility opened Aug. 7, 2009, after its investors and developers sued Clark and Floyd counties in 2005 on the grounds their moratoriums on new hospital construction represented unlawful restraint of trade. In 2006, the hospital received approval after a federal judge struck down the moratoriums.
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