San Jorge Children’s Hospital in San Juan filed yesterday for Chapter 11 protection of the federal bankruptcy law.
The organization filed its voluntary bankruptcy petition in the Federal Bankruptcy Court in Old San Juan yesterday afternoon.
The solicitation document signed by CEO Edward Smith indicates that the hospital’s debt is between $10 million and $50 million.
Similarly, Momentum indicates that its main creditor is the Electric Power Authority, which has a registered debt of $3,062,880, and another $133,422.
The hospital is the Aqueduct and Sewer Authority, with $424,682 of the institution’s 20 main creditors; Pediatric Intensive Group with $308,040; Edwin Cardona and ASOC. with $249,076; and Cardinal Health with $244,138.
From the same firm, it indicated that the net assets are between $10 million and $50 million, while it has identified at least 243 creditors.
A resolution of the Board of Directors of San Jorge Children’s Healthcare, San Jorge Children’s Hospital’s “control unit”, dated Aug. 12, was accompanied by a form submitted by the hospital.
In a press release, The institution’s administration assured this morning that “the operation of San Jorge Children’s and Women’s Hospital will not be affected and that all of its high-quality services will be available to provide patient care.”
He said the hospital is focused on ensuring that staff, physicians and providers can continue to provide customary medical care to patients and the communities they serve.
He also emphasized that employees will not be affected by the restructuring.
“The financial restructuring plan will strengthen our business and allow the hospital to continue the important work it is doing. The hospital continues to face significant financial challenges, which were exacerbated by revenue losses during the COVID-19 pandemic,” Jose Luis Rodriguez, vice president of operations and executive director of San Jorge Children’s and Women’s Hospital, said in a written statement. .
“This financial restructuring plan will reduce our debt, annual interest expense and better position our hospital for future growth,” he said.
He explained that the purpose of the restructuring announcement is to maintain approximately 400 jobs and invest to obtain additional capital that will support the health care needs of the community.
He assured that the new financing and cash proceeds generated from the company’s ongoing operations would be used to support the business and reduce debt.
The institute has over fifty years of experience in health care since it was founded in 1962 by a group of doctors, according to details on its website.