Is your hospital feeling the effects of the economy

vivicaq · Oct 29, 2008

North Oakland Medical to close today due to money problems

Catherine Jun / The Detroit News

PONTIAC -- North Oakland Medical Centers will close its doors at 5 p.m. today due to lack of funds.

Earlier this year, a group of medical doctors, Oakland Physicians Medical Center LLC, agreed to purchase the financially ailing hospital and keep it running. This week, hospital officials announced that the group failed to raise enough money to buy the facility, particularly due to difficulties getting credit in the midst of a national credit crunch.

The emergency center has already ceased receiving patients by ambulance; patients have been referred to other community hospitals. Admitted patients are being discharged or transferred to other hospitals, with the intent to complete the process by 5 p.m. today. Emergency surgery is still being performed for admitted patients, but other surgeries were halted as of Monday.

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"All of the NOMC employees and medical staff have been dedicated to the success of this hospital and to the care of our patients," said John Graham, NOMC president and CEO, in a statement. "We are very grateful for their devotion and we deeply regret that we have been forced to implement plans for closure, but we are committed to providing quality patient care and safety during this transition."

In August, the hospital filed for Chapter 11 bankruptcy. Hospital officials soon after signed a purchase agreement to sell to the hospital to the physician's group, with McLaren as an institutional investor. It will now move into liquidation due to the failed sale.

About 800 employees work at the hospital. Officials say they will continue to host job fairs with other area health care employers to help staff find work elsewhere.

While patient care will end today, the dissolution of the corporation will take place over four months. Chief Financial Officer Mike DeRubeis will take over as interim president and CEO/CFO on Nov. 1 to oversee this process.

North Oakland was the first hospital in Oakland County and has 336 licensed beds.

Nurse Lulu · Oct 29, 2008

Oakwood only has mandatory OT for units that chose to be CLOSED units. They do not get pulled-ever. So, they must fill their own staffing needs. I know in CV it is only 16 hours a pay. Most people pick that up anyway.......If they are over they get convenience leave.....

Also.... I used to work at NOMC and it had MANY problems. For one there are three hospitals in like a 3 mile radius. It was not a level one trauma center, and it lost its residency program several years ago...Sad that it is gone though.....