Wed 02/10/2021 21:38 PM
Mercy Hospital and Medical Center
, a 412-bed general acute care hospital in Chicago, filed for chapter 11 protection tonight in the Bankruptcy Court for the Northern District of Illinois, along with its sole member, Mercy Health System of Chicago
. The company reports $100 million to $500 million in both assets and liabilities. The debtors are represented by Foley & Lardner in Chicago. The case number is 21-01806. The case has been assigned to Judge Timothy A. Barnes. Continue reading for our First Day team's filing alert of the Mercy Hospital bankruptcy filing and Request a Trial for access to the linked documents and analysis as well as our coverage of all U.S. chapter 11 cases filed since 2012 with over $10 million in liabilities.
According to board resolutions attached to the petition, the board previously approved “a clinical transformation plan for Mercy that included the discontinuation of inpatient acute care services at Mercy and the wind-down of Mercy as a licensed full-service acute care hospital due to declining utilization rates resulting in excess inpatient bed capacity, increasing competition from local health systems, movement of care to outpatient settings and the shifting healthcare needs of the communities served by Mercy, resulting in significant and unsustainable financial losses.” The resolutions continue that “Mercy has attempted to effectuate its contemplated clinical transformation plan but has been unable to do so as originally envisioned and management does not anticipate being able to do so in the future; the quality of care at Mercy is an increasing concern as physicians and other colleagues have left Mercy and operating losses have accelerated to $7 million per month.”
The debtors’ list of 30 largest unsecured creditors consists entirely of trade claims ranging from $8,425 to $129,845.
The debtors request
a first day hearing for Feb. 12 at 2 p.m. ET.
Reorg First Day will provide a full summary once the first day briefing is complete.
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