Parker Hughes Cancer Center files for bankruptcy
(AP) - Parker Hughes Cancer Center, which has been struggling since regulators and insurance companies raised questions about its patient care and business practices, has filed for Chapter 11 bankruptcy, officials said Wednesday.
The center and its related research institute issued a statement saying they've tried to streamline their operations over the past year, but have been unable to put their finances in order.
The clinic also said it will continue to treat patients during the bankruptcy proceedings.
"We're here for our patients and we're going to remain open and provide the best care possible to them," clinic manager Nancy Dvorak said.
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Bankruptcy attorney Kenneth Corey-Edstrom said the clinic and institute were still figuring their assets and liabilities, but he estimated they were each in the $1 million to $10 million range.
"This happened quickly," Corey-Edstrom said. "They're getting their numbers together for me."
The Minnesota Board of Medical Practice began investigating Parker Hughes in 2001, but allegations of overly aggressive treatment of patients, excessive ordering of expensive tests and questionable business practices didn't publicly surface until 2003.
Two of the state's largest health insurers, Medica plus Blue Cross and Blue Shield of Minnesota, conducted their own investigations, and the clinic severed ties with them in 2004. Days later, the center laid off 89 employees and imposed pay cuts on top officials.
Last year, the medical practice board suspended the medical license of the clinic's founder, Dr. Fatih Uckun, a move he is still fighting.
Some of the largest debts listed in the bankruptcy petitions included $880,540 owed to Imaging Solutions Inc., of Fargo, N.D., $840,731 to Oncology Therapeutics Networks, of Chicago; $629,340 to the law firm Henson & Efron; $207,361 owed to landlord Roseville Properties Management, and $174,148 to Blue Cross and Blue Shield.
In its statement, Parker Hughes said it plans to ask the bankruptcy court to appoint an ombudsman for patients to ensure that their rights are protected and that they are kept informed during the process.
(Copyright 2007 by The Associated Press. All Rights Reserved.)