By Associated Press
Birmingham, AL – Carraway Methodist Health Systems has filed to reorganize under federal bankruptcy law. Under its Chapter 11 filing, the system will be allowed to submit a plan to restructure its finances to reduce debt while continuing to operate. Yesterday's announcement said management anticipates no changes in staffing or scheduling, and employees will continue to be paid while receiving existing employee benefits. The company's statement yesterday said Doctors Community Healthcare Corporation, which had previously agreed to purchase Carraway's assets, intends to continue with the purchase. The court will review the agreement and will solicit offers from other interested parties before confirming the sale as part of the Chapter 11 procedure. The sale's closing and transfer of ownership is expected to take place within the next 60 days. The system includes Carraway Methodist Medical Center, which is a 617-bed teaching and referral hospital with about 1,000 employees.