Magee General files Chapter 11

By PAT BROWN,

Friday afternoon the news came via telephone that management for Magee General Hospital made the decision to file bankruptcy.

Dr. Charles Pruitt notified The Magee Courier that the hospital had filed for chapter 11 bankruptcy.  He said this would be a way to keep the hospital open and serve the healthcare needs for the people in Magee. 

However, this decision will place any unsecured debt held by creditors in jeopardy.  The decision about these debts will be at the discretion of the court. 

Magee General Hospital is a 64 bed facility with recent figures of 2,400 admissions and a large number of emergency room treatments.  Magee General has operated in Magee for over 70 years. 

  Like many other rural hospitals, Magee General has had it share of issues regarding the recruitment and retention of qualified physicians.  That coupled with fluctuating rates for healthcare reimbursement has made it difficult to continue to operate with a positive cashflow. 

Dr. Pruitt was upbeat that the option of Chapter 11 would give the hospital, as well as the community, options to continue offering quality healthcare in the future for the community.  This will stabilize jobs for the immediate future for the hospital employees. Pruitt said this option will allow some time to make a decision on what the best option is for future healthcare in Magee.