Cheboygan Memorial Hospital closing its doors after sale falls through

Apr 3, 2012

The Cheboygan Memorial Hospital (CMH) is closing today leaving 300 employees without a job.

From the  Cheboygan News:

“With this closure, we will have to close our emergency room,”said Shari Schult, Chief Executive Officer of CMH. “We will need to coordinate with area EMS services and local law enforcement to divert all ambulances to the most appropriate hospital. This closure also means all of our other services are closed, including outpatient clinics, x-ray, lab, cardiac rehab and physical therapy. “It also means all of our employees are without a job,” she added.

9 & 10 News reports the hospital had filed for bankruptcy on March 1.

In an announcement, CMH officials said today's closing came after a proposed sale to McLaren Health Care fell through.

The long-awaited proposed sale of CMH to McLaren Health Care was set to be finalized today. But now, federal regulations are causing it to come to a halt. CMH officials say the problem is with recertification and licensure under Medicare. And now, the organization is running out of money. CMH is only authorized and budgeted to operate as an organization through April 3rd, today, which is the day the proposed sale agreement was to be finalized.