Three Mississippi hospitals and their parent company have filed for bankruptcy—identifying electronic health record (EHR) costs and declining revenues as primary reasons.
According to a report by the Plainview Daily Herald, nonprofit health system Curae Health recently filed for Chapter 11 bankruptcy reorganization in Nashville, Tennessee. Three of the company’s Mississippi hospitals—Gilmore Memorial Hospital, Panola Medical Center and Northwest Mississippi Regional Medical Center—are also seeking bankruptcy.
In the report, Curae Health CEO Stephen Clapp said the move was brought on by declining revenues and “higher-than-expected costs” for EHRs at the hospitals. The company was also about $70 million in debt.
“Clapp added that past revenue and profits were high enough when Curae bought the hospitals in 2017 to pay off the money the company borrowed," the report said. "But he said revenue declined and the hospitals faced higher-than-expected costs for electronic health records. He said the company saw a cash crunch, with vendors demanding payment for lagging bills, which sparked the bankruptcy filing."
To read the full report, click the link below.