(CBS-DETROIT) — Pontiac General Hospital filed for bankruptcy days after the announcement loss of Medicare funding and announcement of more than 240 layoffs.
The hospital, located at 461 W. Huron St., filed for bankruptcy on Saturday, according to a court document.
The document shows the hospital has between $1 million and $10 million in assets, somewhere between $1 million and $10 million in debt and between 50 and 99 creditors.
According to federal officials, a Chapter 11 debtor usually proposes a reorganization plan to keep its business afloat and pay its creditors over time.
On Wednesday, the hospital announced the layoffs of more than 240 people after losing funding from the Medicare program.
According to a release from the Centers for Medicare & Medicaid Services, an agreement between the hospital and the Secretary of Health and Human Services would end because the hospital failed to meet certain Medicare requirements.
Funding for the hospital’s Medicare program ended Sunday, but will continue for up to 30 days for patients admitted before that date.
The first phase of layoffs, which will affect about 186 employees, will begin Friday. The second phase will affect 62 people and will take place between December 6 and December 20.
Note: The above video first aired on November 20, 2024
