CASA GRANDE, Ariz. (AP) — Casa Grande Regional Medical Center is seeking protection under Chapter 11 of the Bankruptcy Code as it moves toward being acquired by a Phoenix-based hospital company, Banner Health.
The acquisition agreement required the bankruptcy filing by Casa Grande Regional and CEO Rona Curphy says it's simply a way to ensure that the acquisition moves forward.
Curphy says the hospital anticipates paying its creditors in full and that Banner intends to keep on all employees who pass background checks.
The Casa Grande Dispatch (http://bit.ly/Mv9Jvy) reports that Banner signed a letter of intent in December, and it now has signed an asset purchase agreement.
Curphy has cited unpaid patient bills as a reason for the sale to Banner.
The acquisition is expected to be completed in May.