Roseland Community Hospital, located on Chicago’s South Side, has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The hospital intends to restructure its debt and develop a recovery plan. It will continue to admit patients.
Medicaid Cuts and Legal Problems Behind the Bankruptcy
Roseland Community Hospital representatives pointed to several factors that led to the facility’s difficult financial situation. They included planned cuts to Medicaid funding, a settlement in a medical malpractice case and the threat of further lawsuits.
The bankruptcy petition was filed just days after the hospital closed its obstetrics unit. The decision marks another major change at the hospital, which serves residents of Chicago’s South Side neighborhoods.
Hospital Will Keep Operating
Proceedings under Chapter 11 allow an indebted facility to continue operating under court supervision. During that time, the hospital can negotiate with creditors, restructure its obligations and prepare a plan to improve its finances.
That means Roseland Community Hospital will not automatically close. The facility is to keep operating during the proceedings.
Mercy Hospital Also Filed for Bankruptcy Earlier
The last Chicago hospital to use the bankruptcy process was Mercy Hospital & Medical Center, which filed in 2021.
State regulators later approved the sale of the facility to Insight Chicago, a nonprofit based in Michigan. After the takeover, the hospital was renamed Insight Hospital & Medical Center Chicago.
Source: Polski.FM
