It looks like another financially-struggling hospital could be forced into bankruptcy this week, due in part to the ongoing crisis in the financial markets. Lincoln Park Hospital in Chicago, which lost $15 million last year, has been forced to hire a firm to find a buyer. With the increasing credit crisis, if a buyer cannot be found, the facility may be forced to close.
Even though it is in a prosperous neighborhood, the hospital has been facing quite a few challenges. Patients have a choice of several other, better-capitalized hospitals in the area. Meanwhile, Lincoln's large number of Medicaid patients has led to slower cash flow, crippling its ability to stabilize itself.
A further challenge lies in the building renovations that need to be done to part of the hospital that was built in 1928. The renovations are likely to cost at least $7 million dollars, which the hospital doesn't have. Borrowing the money to make these renovations isn't easy these days, even for hospitals in better financial shape.
To read more about Lincoln Park Hospital's crisis:
- Read this Chicago Tribune piece