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Article: New American bites bankruptcy bullet.(New American Healthcare Corp.)(Brief Article)
- Article from:
- Modern Healthcare
- Article date:
- April 24, 2000
- Author:
CopyrightCOPYRIGHT 2000 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A string of adverse circumstances--ranging from a poorly timed initial public offering to competitive markets and mounting losses--culminated in a bankruptcy filing for New American Healthcare Corp. last week.
The Nashville-based for-profit, which originally billed itself as a rural hospital company, filed a voluntary Chapter 11 petition in U.S. Bankruptcy Court in Nashville. The company is seeking buyers for all of its eight hospitals and hopes to sell them by the end of July, said Craig Gabbert, a lawyer representing New American in the bankruptcy.
"New American Healthcare, like other acute-care hospital companies, operates in a challenging environment ...