News Headlines Article

Calif. hospital seeks Chapter 11 protection
By Rebecca Vesely

 Downey (Calif.) Regional Medical Center has filed for Chapter 11 bankruptcy protection, but officials said all services will stay open and they hope to reorganize within a year. The 181-bed hospital has had no cash reserves since March 2008, and lost about $20 million annually over the past five years. A new management team took over the facility two years ago and in January began converting money-losing HMO and medical group contracts to PPO contracts, a spokesman said.