St. Vincent's Hospital of Manhattan has, in a long expected move, filed for bankruptcy. The Chapter 11 bankruptcy petition, filed Wednesday, was submitted to the Federal District Court in Manhattan.
The petition reveals a debt of $180 million owed to the Pension Benefit Gauranty Corporation, an arm of the federal governmment. Despite this, the pensions of nurses and other hospital employees is not at risk, according to spokesman for the hospital Michael Fagan.
A medical malpractice trust monitor was second on the list of creditors, with the hospital owing them $113 million.
The hospital is at least $1 billion in debt, but it is likely that that it owes more than that, as $1 billion is the maximum amount that can be checked off on the bankruptcy petition form.
Fagan said that the bankruptcy filing would allow the hospital to continue caring for its patients as it closed.
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