Pontiac General Hospital files for bankruptcy after announcing Medicare funding loss, layoffs
(CBS DETROIT) — Pontiac General Hospital has filed for bankruptcy days after announcing the loss of Medicare funding and announcing over 240 layoffs.
According to a court document, the hospital, located on 461 W. Huron St., filed for Chapter 11 bankruptcy on Saturday.
The document shows the hospital has between $1 million and $10 million in assets, owes somewhere between $1 million and $10 million and has between 50 and 99 creditors.
According to federal officials, a chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
On Wednesday, the hospital announced the layoffs of over 240 people after losing Medicare program funding.
According to a notice from the Centers for Medicare & Medicaid Services, an agreement between the hospital and the Secretary of Health and Human Services would end due to the hospital's failure to meet some Medicare requirements.
Funding for the hospital's Medicare program ended on Sunday, but will continue for up to 30 days for patients who were admitted before that date.
The first phase of the layoffs, which will impact around 186 workers, will begin on Friday. The second phase impacts 62 people and will happen between Dec. 6 and Dec. 20.
Note: The above video first aired on Nov. 20, 2024
