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PA Medical Center Files for Chapter 11

Margaret Dick Tocknell, for HealthLeaders Media, April 11, 2012

Saint Catherine Medical Center in Ashland, PA filed an emergency petition for Chapter 11 bankruptcy on Monday.

The action follows a tumultuous couple of weeks for the medical center. In March an unannounced survey visit by the state Department of Health uncovered serious deficiencies and violations that placed patient health and safety in immediate jeopardy.

As a result, the DOH imposed a ban on new admissions, as well as on surgical services and  emergency and outpatient procedures at the 67-bed hospital. In an April 3 letter, the medical center was notified by the Philadelphia office of the Centers for Medicare & Medicaid Services that because of the deficiencies the hospital no longer met the requirements for participation in the federal Medicare program and faces termination of its Medicare agreement.

Liabilities, Assets Unspecified
The financial petition was filed in US Bankruptcy Court in the Middle District of Pennsylvania by John Doran, a Wilkes-Barre, PA attorney with the law firm of Doran & Doran PC. According to attorney Lisa Doran, because of the emergency nature of the filing, information about creditors, liabilities, and assets has not been specified. The law firm hopes to have a creditors list developed by next week.

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