Business
Symphony Healthcare hits a sour note
NEWS IN BRIEF — Posted June 7, 2004
Symphony Healthcare has filed for Chapter 11 bankruptcy protection following legal action by former employees of its two shuttered acute care hospitals in Oregon.
The Nashville, Tenn.-based company announced the filing May 10, saying it would serve as part of an ongoing effort to liquidate its remaining hospital-related assets and pay creditors.
Symphony chair Ken Perry said in a written statement that the move had been prompted in part by the actions of former hospital employees. "We would have preferred to be able to resolve the financial issues of the company without this filing," he said.
Former employees sued Symphony in January when the company closed its two Portland-area hospitals -- the 209-bed Woodland Park Hospital and 100-bed Eastmoreland Hospital. Symphony said the hospitals had suffered from failing to obtain contracts with two managed care providers and having low patient volume.
Plaintiffs' attorney Giles Gibson said the lawsuits seek about $1.5 million in back wages and vacation pay for roughly 500 former employees. The lawsuits also seek damages under a federal statute that requires large employers to give advance notice when they are going to close.
Gibson said the former employees also filed legal petitions seeking to force Symphony into bankruptcy.
Symphony sold Eastmoreland Hospital to neighboring Reed College earlier this year and was seeking a buyer for Woodland Park.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/06/07/bibf0607.htm.
