Struggling with debts that have soared to twice the value of its assets, Pontiac, MI-based North Oakland Medical Centers has filed for bankruptcy protection. In its Chapter 11 bankruptcy filing, the non-profit hospital listed debt of about $100 million and assets of less than $50 million. North Oakland has 366 beds, but those beds are only 20 percent full, never a positive sign. The hospital had defaulted on a bond payment to the Pontiac Hospital Finance Authority in January, and despite its best efforts, it never succeeded in finding lenders willing to help it refinance, or healthcare companies interested in acquiring the facility.
Unlike some struggling hospitals, however, North Oakland has a savior in the wings. A group of senior physicians plan to buy the facility in a deal that should close by late October, and turn it into a for-profit facility. In the meantime, it's hoping to borrow $2.75 million from McLaren Health Care Corp. to stay afloat until the sale closes.
To learn more about the deal:
- read this Detroit Free Press article
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