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Committee clears bill letting memorial hospitals and hospital districts seek Chapter 9 bankruptcy reorganization
Summary
The committee passed 26 LSO 137, which would allow trustees of memorial hospitals and hospital districts to file for relief under Chapter 9 of the U.S. Bankruptcy Code with county commission approval, a tool intended to let struggling rural hospitals restructure debt rather than liquidate assets.
The Labor, Health & Social Services Committee approved a bill to allow memorial hospitals — and, by amendment, hospital districts — to seek reorganization under Chapter 9 of the United States Bankruptcy Code, subject to local approval.
LSO described the draft as permitting hospital trustees to file under Chapter 9 and requiring county commission approval of both the bankruptcy petition and an initial plan for adjustment of debts. Eric Bully of the Wyoming Hospital Association said the measure is intended to provide an…
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