Downey Regional Medical Center in Southern California – Chapter 11 Reorganization Filed
Posted Sep 15 2009 10:21pm
This hospital is located in southern California and over the last year there has been a bit of discussion on the internet about their financial status. The hospital was in the news when the Martin Luther King hospital was closed as this hospital was one of the closest that would be impacted with patients needing care. Cash reserves ran out in March of 2008 so the nest egg has been gone for quite a while.
Hopefully the bankruptcy court will honor the requests of the hospital and employees and healthcare workers can c ontinue to work as normal through the process, and the hospital had just completed a new business model restructure over the last few years. BD
DOWNEY, Calif., Sept. 14, 2009 (GLOBE NEWSWIRE) -- Downey Regional Medical Center-Hospital, Inc. (DRMC or Hospital) today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The Hospital's Board of Directors unanimously took the action to file Chapter 11 reorganization after concluding that such action was in the best long-term interests of the Hospital, the community, the Hospital's employees, physicians, patients, vendors, and other stakeholders. DRMC will continue normal operations throughout the reorganization process, and plans to re-emerge from the process within a year.
"Today's necessary actions will allow us to clean up the remainder of the financial morass that the current management team inherited that was over a decade in the making, and that we have been working to fix for two years. We are confident in our long-term prospects for success. I want to reassure our patients, our employees, the physicians, and the community that DRMC and its services will be fully open during this process, that excellent patient care will continue to be provided, that payrolls will be met, and that operations at the Hospital will continue normally," said Kenneth Strople, President and CEO of Downey Regional Medical Center.