BREAKING: 'Flood of litigation' forces Powell hospital to file for bankruptcy

Today, Powell Valley Health Care announced that it has filed for Chapter 11 bankruptcy. The hospital reports that the decision was made after extensive discussions and consideration with the Board of Directors. "Chapter 11 is a necessary process for PVHC in order to effectively address and resolve the flood of litigation and personal injury claims recently made against PVHC and Dr. (Jeff) Hansen, who was employed several years ago at PVHC," the clinic said in a statement today. "There are approximately 20 claims which are either lawsuits or in the filing process which have been asserted against Dr. Hansen and PVHC. These lawsuits are being brought by former patients of Dr. Hansen for services rendered back in 2013 and prior years. Dr. Hansen has not provided services at PVHC since 2013. The lawsuits have nothing to do with the current medical staff or care being provided by the medical staff and PVHC to its patients." Hansen reportedly was suspended from the hospital due to patient safety concerns in 2013. He later resigned. "A Chapter 11 bankruptcy is the best available alternative to PVHC for managing and effectively dealing with these multiple lawsuits and the underlying personal injury claims," the statement continued. Filing for Chapter 11 will reportedly force a stay of of the litigations, thereby allowing the hospital more time to focus resolving the personal injury claims. A plan of reorganization will also be done, which will also help the hospital deal with other lawsuits filed by Homeland Insurance and Utah Medical Insurance, which claim they have no obligation to provide coverage regarding the other lawsuits. The hospital says that the bankruptcy filing will have no affect on current employees; no layoffs or staff reductions are planned. "The Board of Directors and the staff at PVHC will continue to provide the highest quality care available and look forward to their continuing relationship with the Powell community and surrounding areas and all the patients they have been fortunate enough to serve," the hospital says. "We are confident that PVHC will emerge from the Chapter 11 bankruptcy case as a stronger and better institution and we greatly appreciate your support." Read the complete statement here . #reboot #news