PA Hospital Changes Course, Now Pursuing Chapter 7

The report concludes that "the trustee does not believe that this corporation is capable of being reorganized." If the request to convert to Chapter 7 bankruptcy is granted, Schwab asks for "limited operating ability for the trustee to take care of billing, medical records, return leased
equipment, and to sell those assets as possible through a specialized auctioneer."

This latest 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 surgical services, 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 medical center faced termination of its Medicare agreement.

Efforts to reach the trustee or the attorneys handling the bankruptcy for Saint Catherine Medical Center were not successful.

According to a Pennsylvania Department of Health spokesperson Saint Catherine officials "have volunteered to surrender the license and send it back" to the DOH. "To date, we have not yet received the license."

See Also:
PA Hospital's Deficiencies Detailed in CAP
PA Hospital's Financial Woes Trigger Harsh Repercussions