Wyoming Hospital Headed for Bankruptcy after Numerous Lawsuits

A Powell, Wyo. hospital has filed for bankruptcy as it faces about 20 lawsuits over surgeries performed by a former orthopedic surgeon.

The Powell Tribune reported that Powell Valley Healthcare’s board of directors approved filing for Chapter 11 bankruptcy Monday. The board said in a statement the lawsuits from former patients of Dr. Jeffrey Hansen are the only reason for the decision.

Hansen was employed by Powell Valley Healthcare from 2006-14 and resigned after being suspended due to “patient safety concerns.”

The board’s statement says the litigation that’s come from the “alleged events” has “caused a tremendous strain in personnel time and finances.”

Hospital officials don’t expect operating under Chapter 11 to have an impact on the hospital’s daily operations, and no layoffs or staff reductions are planned.