Stokes County Gets Bankruptcy Court’s Approval to Sell Hospital

by San Antonio Attorney

Stokes County has received the approval of a federal bankruptcy court to sell its hospital as well as its medical facilities for the price of $400,000.  The buyer is LifeBrite, a for-profit association.

Since July, the facilities have been operated by associate of LifeBrite Hospital Group LLC.  It started before the Stokes Board of Commissioners decided to stop paying for the expenses of the hospital.

There hardly any information about the buyer regarding its nature of business.  According to reports, the LifeBrite was created in October 2015, listing Christian Fletcher as the only officer of the organiztion.  LifeBrite created a Stokes unit on Oct. 12.

The closing date for the transaction is on Jan. 31.

Commissioners approved to hand over the lease for the hospital to LifeBrite.  There are around 200 employees in the medical facilities.

LifeBrite is going to assume $1.3 million in Medicaid and Medicare payment obligations from Pioneer Health Services, which earlier filed for Chapter 11 bankruptcy.  Pioneer declared bankruptcy along with 7 other hospitals in Virginia, Tennessee, Mississippi and Georgia,

LifeBrite faced a number of legal challenges because of its proposal, mainly because of Pioneer’s delay or inability in making payments for software medical equipment and, or to insurance providers.  All of the obstacles have been settled by LifeBrite and the bankruptcy court before the offer of LifeBrite was allowed.

For instance, the new owner is going to sign new leases for certain pieces of equipment and software.

Pioneer cited “significant change” in the environment of health-care for its financial problems.

The United States health-care systems are having a hard time to fine-tune to a lower number of outpatient and not obligatory surgeries, increase in uninsured patients asking for help in emergency departments, and compensation reductions from Medicaid and Medicare — all of which reduce their income streams.

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