Roseland Community Hospital Files Chapter 11 Bankruptcy
Roseland Community Hospital, a safety-net hospital in Chicago, filed for Chapter 11 bankruptcy protection on Nov. 4 to restructure its debt while continuing normal operations, according to a hospital news release. The hospital cited a recent medical malpractice settlement, threatened lawsuits over service agreements, decades of underfunding for safety-net hospitals, and potential Medicaid cuts under HR 1 as reasons for the filing. The petition, filed in the U.S. Bankruptcy Court for the Northern District of Illinois, lists estimated assets and liabilities each between $10 million and $50 million, and the hospital expects to submit a reorganization plan within 120 days. The filing comes a month after the hospital announced plans to close its labor and delivery unit, and the hospital said it will continue working with Illinois to keep its grant agreements in compliance, including an August "Pivot Plan" to expand behavioral health, same-day surgery, and maternal-fetal services.