Pontiac General Hospital files for bankruptcy after announcing Medicare funding loss, layoffs

(CBS DETROIT) Days after declaring over 240 layoffs and losing Medicare funds, Pontiac General Hospital filed for bankruptcy.

The hospital, which is situated at 461 W. Huron St., filed for Chapter 11 bankruptcy on Saturday, per a court filing.

According to the paper, the hospital owes between $1 million and $10 million, has between 50 and 99 creditors, and has assets of between $1 million and $10 million.

A chapter 11 debtor often suggests a reorganization plan to maintain its business and gradually pay creditors, according to federal officials.

Following its loss of Medicare program funding, the hospital revealed on Wednesday that it had laid off more than 240 employees.

A warning from the Centers for Medicare & Medicaid Services stated that the hospital’s failure to comply with certain Medicare standards would result in the termination of an agreement between the facility and the Secretary of Health and Human Services.

Medicare program funding for the hospital expired Sunday, but for patients hospitalized prior to that day, it will continue for a maximum of 30 days.

The layoffs, which will affect about 186 employees, will start on Friday. Between December 6 and December 20, 62 people will be impacted by the second phase.

Note: On November 20, 2024, the aforementioned video debuted.

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