Iowa Hospital Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Central Iowa Healthcare, a Marshalltown-based acute care facility, filed for Chapter 11 bankruptcy on Dec. 20, 2016.

The 49-bed hospital proposed to sell its assets to Iowa-based UnityPoint Health Waterloo, which is associated with UnityPoint Health in West Des Moines. CIH is hoping to close the transaction in the first quarter of this year.

UnityPoint Health-Waterloo intends to provide funding for the operations of CIH throughout the sale period and the bankruptcy case.

CIH said its operations will not be affected by the bankruptcy case or the sale. After the transaction is completed, the employees are encouraged to apply for jobs with the newly acquired UnityPoint Health.

The bankruptcy case has been filed in the U.S. Bankruptcy Court for the Southern District of Iowa.

CIH is an outpatient center with four primary care facilities.

There have been several reports about U.S. hospitals filing for bankruptcy.  The two most common reasons for the filing are inflating costs for medical care and shrinking health networks.

Bankruptcy is usually a last resort to deal with creditors.  Throughout the bankruptcy case, the creditors are prevented by the automatic stay from collecting debts.  But considering that bankruptcy law is a highly complex legal field, it is best for those who are planning to file for bankruptcy to consult a Bankruptcy Lawyer San Antonio.

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