Hospital opts for bankruptcy to find strong partner
The health care industry has faced many ups and downs over the last decade, and many are unsure of what to expect from the future as new legislation is introduced and implemented regarding the health care of most Americans. As hospitals and clinics work to save lives and heal the citizens of Florida, many are fighting an internal battle to make ends meet amid criticisms of high costs and outrageous fees. In an effort to obtain some form of debt relief, hospitals may choose to file for bankruptcy rather than facing complete closure.
After over 70 years in business, a West Virginia hospital that provides jobs to over 700 people is facing bankruptcy as a restructuring option before finding a new partner. Although no information was released regarding the specific debts and assets of the hospital, it is expected that those numbers will be given when the hospital attends federal bankruptcy court.
Employees are concerned about the future of their pensions and health benefits as the hospital works to restructure its financial plan. The hospital’s spokeswoman claims the hospital is looking to negotiate a partnership from a position of strength with their recent decision.
Although many of the details are unknown and no one can predict exactly how the situation will end, bankruptcy is often a viable option for a company that is struggling and wants to remain profitable and functional in order to continue providing jobs, benefits and care to the community. With the help of both executives and employees, the hospital may emerge fully prepared for a profitable partnership.
Source: Tampa Tribune, “Fairmont General says it will file for bankruptcy,” August 30, 2013