For many readers in Escondido and throughout the country, it is increasingly common to hear something about bankruptcy while reading the news. In the current economy, many cities are facing financial troubles; big and small businesses are facing tough decisions about the future; both wealthy and struggling Americans are filing for personal bankruptcy; and now even some medical facilities are in need of bankruptcy protection.
California residents may be interested to hear that a small regional hospital in Michigan recently filed for Chapter 11 bankruptcy after the hospital lost $7 million during 2011. Thankfully, hospital staff will continue operations while the financial restructuring occurs.
The hospital's directors, who are on the look-out for potential investors, made the decision to file for Chapter 11 bankruptcy because it was believed that bankruptcy was the only way to save the hospital. According to the chairman, the hospital struggled for years and made a lot of sacrifices, including dramatic cuts to the workforce, but the facility was simply not able to save enough money.
Since filing for bankruptcy, Cheboygan Memorial already received an offer for a loan from another health-care corporation. The loan will be used to let the hospital continue to provide services to patients during the Chapter 11 reorganization. As a result of their decision, hospital officials remain hopeful about the future.
For struggling businesses in California, Chapter 11 can offer much needed relief while a new financial plan is set into motion. The process of filing for bankruptcy can certainly feel overwhelming for some people, but once the procedure is finished, business owners can breathe more easily while a clearer plan for the future takes shape.
Source: Soo Evening News, "Hospital files for Chapter 11 bankruptcy," March 2, 2012