Feb 14, 2020 10:00 PM

Owner of closed Missouri hospital files for bankruptcy

Posted Feb 14, 2020 10:00 PM

BOONVILLE, Mo. (AP) — The Kansas-based owner of a Boonville hospital that abruptly closed in January has filed for Chapter 11 bankruptcy.

Pinnacle Healthcare System filing for reorganization means the Boonville hospital will reopen, CEO Joe Conigliaro said in a statement Thursday, although he did not provide further details. An Overland Park, Kansas, hospital owned by Pinnacle Healthcare will remain open.

The Chapter 11 filing will allow the companies “to restructure our debts and ensure stable, stronger, and viable business operations now and when we emerge from Chapter 11,” Conigliaro said.

The company owes somewhere between $10 million and $50 million to between 200 and 1,000 creditors, according to its bankruptcy petition.

The Pinnacle Regional Hospital in Boonville hospital suddenly closed Jan. 15, less than two years after Pinnacle Healthcare System bought the hospital. The company said it could not afford to comply with some Missouri Department of Health and Senior Services regulations.

MU Health Care said in a Thursday news release that it has hired several former Pinnacle employees and is working to find space to provide services in Boonville.