San Diego Hospice President and CEO Statement Regarding Organization
Nonprofit organization files for Chapter 11 bankruptcy to reorganize assets, adapt to current circumstances
On Monday, February 4, 2013, San Diego Hospice filed for Chapter 11 bankruptcy. Our decision to take this course follows many months of financial and other challenges. Our top priority continues to be to provide the highest quality of care and service to our patients and families, followed closely by our continuing dedication to our staff and to our community. Chapter 11 bankruptcy will allow us to continue our operations, while reorganizing our assets and exploring our structural options to adapt to the current circumstances.
This decision was based upon several critical challenges currently facing the organization, including a rapidly decreasing census lowered by 50 percent over a three-month period, creating additional severe financial challenges. Hospice care providers across the country are challenged by government reimbursement rates, and Medicare provides the largest source of our revenue. We have also acknowledged that we are undergoing a Medicare audit, for which the results are still unknown.
This reorganization process will take approximately 60 to 90 days, during which time we will continue to provide excellent patient care for all of our patients and families. In addition, we will meet with government agencies to address their concerns, explore partnerships with other health care organizations, and work to restructure and resize San Diego Hospice to reflect the future of hospice care, considering all options to make the best decisions possible for our patients, families, and staff.
We are hopeful that by filing bankruptcy, San Diego Hospice can work through its current financial difficulties. But the outcome of this process is uncertain. Because we have downsized and face other challenges, we encouraged Scripps Health - the region's largest provider of health care services - to enter the hospice business, to help us meet the community's need for high quality hospice care.
San Diego Hospice has had many discussions with Scripps Health in recent weeks to discuss continuity of care issues for our patients. We have a longstanding positive relationship with Scripps and they have been a strong partner and our largest referral source for many years.
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