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(USGovernment-News.Com, May 28, 2013 ) Albuquerque, NM -- According to an affidavit filed this week by KidsPeace Corporation Chief Executive Officer, William R Iseman, the company will try to use bankruptcy to reduce its $51.3 million debt to $24 million, and lower pensions obligations that currently exceed over $100 million.
While the company has assets that are valued at less than $50 million, they owe creditors more than $100 million. The company says that with the government spending cuts that took effect in 2008, the company could no longer keep their head above water.
The U.S. Federal and state Medicaid program that provides health insurance to underprivileged children cut reimbursement rates to doctors and other health professionals involved in the nonprofit program. Medicaid was the company’s biggest source of revenue, and when budget cuts affected them, they could no longer take in as many teens, forcing other cutbacks.
KidsPeace traces its roots to an orphanage founded in Orefield, Pennsylvania in 1882. Now, the company and its eight units have 750 employees that include nurses, doctors, and teachers. The hospital provides 96 beds for inpatient psychiatric care to children and adult patients aged 21 and under.
A juvenile justice program was started in Minnesota and other residential treatment centers were built in Pennsylvania, Georgia, and Maine. All of them serve children with psychiatric disorders.
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