San Jose/Good Samaritan Medical Group Files for Chapter 11 Bankruptcy Protection
San Jose/Good Samaritan Medical Group, the largest network of doctors in the South Bay, yesterday filed for Chapter 11 bankruptcy protection after "years" of financial troubles, the San Jose Mercury News reports. Under Chapter 11 bankruptcy law, the group, which serves about 100,000 patients in Santa Clara County, will be allowed to continue operations but must submit a restructuring plan to its creditors to become viable again. Dr. Dean Didech, chair of the group's board, said that despite the financial problems, the group's patients would see "no major changes." Didech said, "We will continue to pay the employees, buy the supplies and services we need, and run a medical group practice." The current financial situation "will have no effect on the health services we provide," Didech added. During a staff meeting on Monday, however, board members said that "they are almost certain" the group's clinic in Morgan Hill will be closed, the Mercury News reports. In addition, the group is considering consolidating services at three additional clinics, possibly closing one or two. Didech added that layoffs are a "definite possibility." According to the Mercury News, it is "not clear" how much the medical group is in debt. State officials last October declared the group as one of several medical groups statewide that could not meet state solvency requirements (Sevrens Lyons, San Jose Mercury News, 10/1).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.