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Terrell hospital filing for bankruptcy

Aug 21, 2008

It was a hard day at Renaissance at Terrell Hospital Thursday. About 75 percent of the staff were told they were being laid off and that the management company was filing for bankruptcy.

The hospital’s emergency room is open for minor problems and to stabilize patients so they can be moved to another hospital.

“The hospital, it appears, will eventually close itself,” Terrell City Manager Torry Edwards said.

He said he had spoken Thursday morning with Atlantic Health Group’s CEO Jerome Mee and been told that the layoffs were imminent. The city heard later that the hospital was filing for bankruptcy.

Hospital managers, including Mr. Mee, did not return phone calls.

Mr. Edwards said again that the city wants the hospital to stay open and is looking for investors. He said a consortium of local doctors has formed hoping to take over the hospital.

“The city hasn’t seen a financial plan,” Mr. Edwards said.

He spoke to hospital employees on Wednesday and told them that no “big name” hospital group is interested in taking over the facility.

The city owns the hospital and leases it to a hospital management company for operations. The lease is virtually free -- $10 a year. The hospital has had five managers in five years.

Mr. Edwards said the city does not have the expertise or money to operate the hospital.

“It’s not feasible,” Mr. Edwards said. “It’s impossible for the city to fund that hospital.”

The city does have a temporary restraining order to protect the hospital’s assets. It’s not clear how a bankruptcy would affect that.

“Bankruptcy would definitely muddy the waters,” Mr. Edwards said.


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