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Hospital Pushed Into Bankruptcy

Hospital Pushed Into Bankruptcy

: Richard West Law Office

HospitalThese days it isn’t just consumers that experience the stress of rising healthcare costs. Doctors and hospitals are also finding it difficult to pay their bills and keep the practice open. One D.C. area hospital is even being forced into bankruptcy by its creditors.

A Chance To Claim

The creditors of Washington D.C.’s Specialty Hospital are tired of waiting for payments on some $2.5 million in outstanding debt. With the troubled healthcare facility experiencing financial hardship, the creditors have taken matters into their own hands for a chance to claim at least a portion of what is owed.

The healthcare provider reportedly owes around $50 million in corporate debt, unpaid taxes, and overdue utility bills. However, this group of creditors is seeking the courts help with forcing the hospital to enter a payment plan agreement through an involuntary filing.

Under U.S. Bankruptcy Law, there is a 21 day response period in which the hospital can contest the filing or agree to have the case converted into a Chapter 11 restructuring case.