By Tom Hals
May 30 (Reuters) – Sound Shore Health System Inc of suburban
New York City filed for Chapter 11 bankruptcy, blaming
government spending cuts, and plans to sell its business to
Montefiore Medical Center for $54 million.
The company provides healthcare services through its Sound
Shore Medical Center of Westchester, Mount Vernon Hospital Inc
and a nursing home and extended care facility.
Sound Shore said it was struggling due to cuts in government
spending.
“As is true with many community hospitals serving a
working-class constituency, the Medical Centers have been beset
by the financial pressures caused by cuts in Medicare and
Medicaid funding,” the company said in documents filed in
Manhattan’s U.S. Bankruptcy Court on Wednesday.
The company said it had assets worth $159.6 million at the
end of last year and liabilities of approximately $200 million.
The company reported 2012 revenue of $241.8 million.
Bankruptcy lawyers and advisers have said they expect a wave
of restructuring among healthcare providers as governments look
to rein in their medical spending.
Earlier this month KidsPeace Corp of Pennsylvania, which
operates a psychiatric hospital, filed for bankruptcy and also
blaming cuts in Medicaid.
