Filing for bankruptcy: a sign of failure or hope for the hospital?
Baker, J.W.; Stonehill, E.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 40(1): 50-54
1986
ISSN/ISBN: 0735-0732 PMID: 10274785 Document Number: 284824
Hospitals that file for bankruptcy are usually viewed as admitting failure or defeat. However, bankruptcy can become a constructive financial management tool if used appropriately. Under Chapter 11 of the Bankruptcy Code, hospital management can use bankruptcy to reorganize the failing financial situation of the hospital into one that is financially stable and able to continue operations indefinitely.