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Officials pass measure to OK bankruptcy filing for hospital

February 19, 2019

PLYMOUTH, N.C. (AP) — Officials in North Carolina have authorized a county manager to force the owners of a local hospital to file for Chapter 7 bankruptcy.

News sources report Washington County commissioners will be filing legal action to force Empower HMS, which owns and operates Washington County Hospital, to enter into involuntary bankruptcy. County Manager Curtis Potter said the commissioners voted Monday with the understanding the county is the creditor for the hospital, and is within its rights.

Potter said the county is enforcing a clause which brings the property back to the county if it’s no longer used for hospital purposes.

The hospital suspended clinical services last Thursday. CEO Melanie Perry had said the owners planned to resolve several problems, including dwindling medical supplies and workers not getting paid for two weeks.