SD Hospice Files for Bankruptcy

By Lauren Steussy and Paul Krueger
|  Monday, Feb 4, 2013  |  Updated 6:55 PM PDT
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Hospice Officials Resign After Audit Report

Two high-level San Diego Hospice employees have resigned after reports of a federal Medicare audit that will affect local end-of-life-care organizations.

San Diego's Remembrance Walk

The "Remembrance Walk" took place at Liberty Station in Point Loma on Sunday to benefit the LightBridge Hospice Community Foundation. NBC 7's Artie Ojeda reports.
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San Diego Hospice has filed for Chapter 11 bankruptcy, according to a statement from the organization's CEO.  

"Our decision to take this course follows many months of financial and other challenges," said Kathleen Pacurar, CEO of the troubled non-profit. 

The end-of-life care service, which faces growing medical costs and a federal audit, announced it will continue operations while it reorganizes assets and "explores" structural options. This will take up to 90 days, Pacurar said.

According to the Chapter 11 filing, the organization's creditors include Wells Fargo Bank, which the organization owes $4 million, and Price Charities.

Among the critical challenges now facing San Diego Hospice includes a rapidly decreasing number of patients. Pacurar said that number has decreased 50 percent in just three months. 

Last year, two high-level San Diego Hospice employees resigned in the midst of a years-long Medicare audit. The results of that audit are still unknown. 

Pacurar said in a previous article the organization was expecting to return money to Medicare because it hadn't been strict enough in making sure that it only accepts patients who are likely to die within six months.

According to KPBS, In December of last year, the organization temporarily shut down its 24-bed hospital in Hillcrest and laid off staff.

Check back here for more information. 

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