Interfaith Medical Center In Brooklyn Files For Bankruptcy Protection
NEW YORK (CBSNewYork/AP) -- Interfaith Medical Center in Brooklyn has filed for Chapter 11 bankruptcy protection.
The New York Times reported the hospital filed for Chapter 11 reorganization late Sunday. The hospital listed the federal and New York State governments, as well as numerous malpractice plaintiffs, among its largest creditors, the newspaper reported.
The hospital on Atlantic Avenue serves the nearby communities of Crown Heights and Bedford-Stuyvesant.
The filing lists the State Dormitory Authority as its single-largest creditor, with over $130 million in unsecured claims, the New York Times reported.
Court papers also list six malpractice settlements, and one malpractice jury verdict, ranging from $1.3 million to $7 million, the New York Times reported. Also contributing to the debt at the hospital is a benefit fund for the Service Employees International Union Local 1199, which represents health care workers, the newspaper reported.
The newspaper said Interfaith officials reported they need $20 million from the state just to continue operating during bankruptcy reorganization. Otherwise, the hospital faces the possibility it will have to close.
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