Hospital in Brooklyn Files for Bankruptcy Protection

A Brooklyn hospital, Interfaith Medical Center, has filed for Chapter 11 bankruptcy reorganization, listing the federal and state governments and several malpractice plaintiffs among its largest creditors.

Interfaith, which is on Atlantic Avenue and serves nearby Crown Heights and Bedford-Stuyvesant, lists the State Dormitory Authority as its single-largest creditor, with more than $130 million in secured and unsecured claims, according to papers filed electronically in court late Sunday. Hospital officials said earlier Sunday that they planned to file the papers shortly.

The court papers also list six malpractice settlements and one malpractice jury verdict ranging from $1.3 million to $7 million among its largest unsecured claims, along with a pension fund for nurses and a union benefit fund for Local 1199 SEIU, the health care workers’ union.

In the next 30 days, the hospital estimates, its cash spending will exceed its cash receipts by nearly $2 million, and it will have $7 million in unpaid obligations and $26 million in unpaid receivables, other than professional fees.

Interfaith officials have said that they need $20 million from the state just to continue operating during the bankruptcy reorganization, and otherwise face the possibility that the hospital will close.

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