A clinic in Galesburg has filed Chapter 11 bankruptcy.
Galesburg Cottage Clinic has filed Chapter 11 bankruptcy to reorganize “to ensure its viability in the medium and long term,” Courtney Bibo, director of community and staff relations for Galesburg Cottage Hospital, told Local 4 News on Thursday.
The hospital is not included in this bankruptcy, Bibo said.
“The Clinic Corporation intends to continue to operate throughout the process and emerge with a more sustainable model,” Bibo said.
The clinic and hospital are separate businesses, she said.
Chapter 11 is a form of bankruptcy that involves reorganization of a debtor’s business affairs, debts, and assets. It often is referred to as a reorganization bankruptcy.
The filing comes after the Centers for Medicare and Medicaid Services determined the hospital was non-compliant with Medicare conditions of participation for hospitals in areas of its governing body, patient rights, nursing services and physical environment, according to CMS documents.
CMS previously had given notice the agreement would terminate Dec. 27 but has administratively extended the termination date to Jan. 14, records say.
The Medicare program will not make payment for inpatient hospital services furnished to patients who are admitted after the close of Jan. 14, documents say. For patients admitted on Jan. 14, or earlier, “payment may continue for up to 30 calendar days of inpatient hospital services furnished after January 14, 2022,” CMS documents say.