Cheboygan Memorial Hospital bankruptcy case back in court

Update 10:00 pm: CHEBOYGAN, Mich. (AP) - A lawyer for Cheboygan Memorial Hospital says sale of the recently closed northern Michigan medical center is expected to close Tuesday morning, clearing the way for it to reopen. Shawn M. Riley says hearings Monday in U.S. Bankruptcy Court in Bay City removed impediments to the sale of the hospital to Flint-based McLaren Health Care Corp. The planned sale of the hospital fell through four weeks ago because of problems in getting needed federal regulatory approval for treatment of patients covered by the Medicare and Medicaid programs.The hospital was Charlevoix County's largest employer with about 400 workers. It's unknown how many people will be rehired.

Administrators from McLaren, Cheboygan Memorial, the Center for Medicare and Medicaid Services, and other interested parties are due back in bankruptcy court on Monday, April 30th, in Bay City. And they hope to agree on a deal to re-open the shuttered Cheboygan Memorial Hospital.

On April 23rd, More than 2,200 people rallied at Cheboygan Memorial Hospital and an announcement came that no one expected. McLaren officials announced that a deal has been worked out between the Centers of Medicare & Medicaid Services and McLaren Health System that would allow Cheboygan Memorial Hospital to reopen its emergency room and other outpatient departments.

McLaren must go before the bankruptcy court judge before anything can reopen. And that could happen in court on Monday, and if the deal is approved the re-opening process and hiring would start immediately.

Stay with 7&4 News for the latest developments on this story.