April 09, 2020

Hospital’s finances debated

PORTLAND — A Superior Court judge is expected to decide this week whether to assign outside consultants to operate and manage the financially troubled Jackson Brook Institute.

BancBoston Real Estate Capital Corp., which holds the mortgage on the South Portland hospital, is seeking a foreclosure against JBI Associates, a limited partnership that owns the building.

JBI Associates wants to have a judge place the hospital in receivership. But Jackson Brook contends that appointing a receiver will cripple the hospital’s ability to treat mentally ill patients.

Jackson Brook is proposing a repayment plan to catch up on the past-due mortgage payments within six months.

Superior Court Justice Susan Calkins said she will make a decision on the hospital this week.

The hospital’s current cash-flow problems have coincided with a dispute with the state over Medicaid payments and a drastic cut in such payments to the hospital.

The state has cut its weekly payments to Jackson Brook from $300,000 to less than $200,000.

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