Hospital bankruptcies: an exploration of potential causes and consequences.

Although small in number, hospitals are increasingly seeking bankruptcy protection. This article explores the potential forces that might motivate hospitals to seek bankruptcy protection and the potential consequences for hospitals that obtain it. Case reviews of 11 hospital bankruptcies that occurred in 1990 and 1991 are presented. The findings should assist hospital executives, trustees, financial analysts, and legal counsel as they assess bankruptcy as an option for distressed hospitals.