Michigan hospital files for bankruptcy, loses Medicare funding: 4 things to know

Pontiac (Mich.) General Hospital is seeking Chapter 11 protection after it filed a WARN notice Nov. 15 to lay off 248 employees after learning it had lost Medicare funding. 

Here are four other things to know about the bankruptcy filing:

1. According to the Nov. 23 filing, the hospital has between $1 million and $10 million in assets, owes around $1 million to $10 million and has 50 to 99 creditors. 

2. Medicare funding for the hospital ended Nov. 24, but payment will continue for patients admitted before Nov. 24 for up to 30 days, according to a Nov. 8 CMS notice

3. There will be two phases of layoffs at the hospital. The first laid off 186 employees on Nov. 16 and 62 more will be laid off Dec. 20.

4. The hospital says that the Medicare fund exclusion is temporary and should last less than six months. According to the Nov. 15 WARN notice, the layoffs are also not expected to be a permanent solution.

Pontiac General Hospital did not immediately respond to Becker's request for comment.

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