Cheboygan Memorial Hospital -- SOLD

<p><em><a href="mailto:stephanlj@interlochen.org">By Linda Stephan</a></em></p> <p>Leaders at Cheboygan Memorial Hospital say a deal has been reached today that will protect the hospital from an "orderly wind down of the organization."</p> <p>They say federal bankruptcy court in Bay City today approved sale of the hospital to McLaren Health Care, a system based in Flint. CMH leaders say more details of the sale will be released in coming days.</p> <p>The hospital filed for bankruptcy earlier this month, but it's been so secret for years that CMH had deep financial woes. At times in recent years, leaders have said there have been deep enough cash flow problems to threaten payroll. In 2010 the hospital closed its birthing ward and Petoskey's Northern Michigan Regional Hospital, now McLaren - Northern Michigan has stepped in to offer help.</p> <p>Court filings show NMRH was Cheboygan's largest unsecured creditor, with $750,000 dollars in trade debt. CMH also owed Munson Medical Center more than $300,000 dollars. </p> <p>Filings show Cheboygan Hospital leaders blame declining revenue on local economic conditions, increasing patient deductibles and aggressive competition for physicians and patients. Some of those same concerns have been cited by other hospitals around the region.</p>