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Monroe Hospital Files For Bankruptcy, Looks For Buyer

By Gretchen Frazee

Posted August 12, 2014

Monroe Hospital in Bloomington is considering selling its assets to a prospective buyer after it filed for Chapter 11 bankruptcy Friday.

Monroe Hospital has been struggling financially for some time and currently owes more than $120 million, according to one of the company's bankruptcy attorneys. The largest debts are with the hospital's landlord.

The prospective buyer is Prime Healthcare, a nationwide hospital operator, and Monroe Hospital is working with the courts to move the bidding process forward.

"During that sale process currently, the hospital will continue to remain open, is operating its assets in the ordinary course of business, patients services shouldn't be impacted, nor are employee wages," says Bingham Greenebaum Doll attorney Jim Irving, who is representing Monroe Hospital LLC.

Irving says Prime Healthcare may not end up buying Monroe Hospital, but an initial offer will open up the process for other companies to also bid on the hospital's assets.

Monroe Hospital is the smaller of Bloomington's two main hospitals. The other is IU Health Bloomington.

St. Vincent Health is a partner of Monroe Hospital, largely contributing to cardiovascular and orthopedic services.

St. Vincent spokesman Johnny Smith says the health organization plans to continue those services even if the operation of Monroe Hospital changes hands.

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