Mediplex Chapter 11 won’t mean closing, hospital speaker says
Published 12:00 am Sunday, December 20, 1998
Mediplex Rehabilitation Hospitals parent company has filed for Chapter 11 bankruptcy protection, but the Bowling Green facility is not at risk of closing, a Mediplex administrator said. Delaware-based Sun Healthcare Group owns Mediplex and 424 other facilities across the country, including three in Lexington. Chapter 11 bankruptcy protection allows a business with substantial debts to reorganize its assets without surrendering property and to remain open in the process. Suns nursing homes will be affected by the bankruptcy, which is a result of changes in Medicare reimbursement; its rehab centers including Mediplex should not be affected, Mediplex Chief Executive Officer Jeffrey Durham said. We dont anticipate any impact on us at the local level, Durham said. For our hospital, its business as usual no change in staffing. The 60-bed physical rehabilitation hospital previously had worked with Sun and a third party on the possible purchase of Mediplex, Durham said. The Medical Center also has entertained the idea of buying Mediplex, and those negotiations wont be hurt by the bankruptcy, company leaders said. We certainly hope this declaration of bankruptcy will be a step towards reopening discussions that will lead to Commonwealth Health Corp.s acquisition of Mediplex, CHC Executive Vice President Ron Sowell said in a statement.