Cabrini Medical Center Files For Chapter 11

Cabrini Medical Center filed for chapter 11 bankruptcy protection today at the US Bankruptcy Court for the Southern District of New York.  According to the Affidavit of the Chief Operating Officer in Support of the Chapter 11 Petition, the debtor had assets of $46 million (book value) and liabilities of $167 million, as of May 31, 2009.  

According to the affidavit, “Cabrini Medical Center offered inpatient medical/surgical, psychiatric and rehabilitation services and was a state-designated AIDS center.”  (page 2)

The affidavit also states that “Cabrini suffered a significant decline in inpatient treatment due to a regional over-concentration of medical/surgical beds and a lack of tertiary and quaternary services.  As was true of many urban hospitals in the greater New York area, besides decreased utilization, Cabrini was beset by the financial pressures cause by cuts in Medicare and Medicaid funding, declining indigent pool payments, an increase in managed care penetration at lower rates, and a change in case mix.”  (page 3)

Need nightly updates of new Chapter 11 filings?  Contact Ken at ktroubh@nationwideresearch.com