Gerald Champion Regional Medical Center, Alamogordo, N.M., filed a petition to enter Chapter 11 bankruptcy, citing a need to ensure the hospital's immediate and long-term viability and to create an orderly process to resolve a group of personal injury lawsuits, according to a news release from the hospital and court filings.
N.M. hospital enters Chapter 11; lawsuits noted
“The majority of the lawsuits were filed between June and October 2010 and relate to procedures that have not been performed at the hospital for nearly three years, by physicians who no longer work at the hospital,” according to the release. Lillie Lewis, a spokeswoman, declined to provide additional information on the suits.
One of the 99-bed hospital's bankruptcy filings notes that the hospital is unable to extend a letter of credit expiring Nov. 15, 2012, because of the uncertainty concerning the suits. As of June 30, 2011, Gerald Champion's current assets, a measure of liquidity, were approximately $32.1 million and current liabilities, excluding the lawsuits, were approximately $20.2 million, a bankruptcy court filing notes. But in November, without any prospect of replacing or extending the line of credit, the current liabilities will jump to approximately $57.1 million, according to the filing.
Total assets were $153.8 million, according to the petition for bankruptcy.
The hospital said its 700 employees will continue to be paid and notes it has a longstanding partnership with the Defense Department allowing for Air Force physicians from Holloman Air Force Base to admit and treat Defense beneficiaries.
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