Not even medicine can escape the wounds of the recession.
Commonwealth Cancer Institute, a radiology clinic on Marshall Street in Richmond, filed for Chapter 11 bankruptcy protection Friday.
It’s the first medical practice to file for bankruptcy protection in the Richmond district of the U.S. Bankruptcy Court since the recession began.
However, the company’s problems were not new. Leslie Saunders, an attorney with the firm Saunders Cary & Patterson, did some work for Commonwealth Cancer about six years ago. At the time, Commonwealth was trying to raise money. Saunders was never paid his $20,000 and is listed as an unsecured creditor. He had long since given up on the money and did not know the company filed for bankruptcy.
The slowing economy didn’t help the practice, which was losing referrals to area hospitals. Calls to Commonwealth Cancer were not returned.
According to a lawyer from the firm Cantor Arkema, which filed the paper work, the practice was a victim of the slowing economy with patients going longer without paying, and also some physicians leaving.
The company, which also owns the property through another LLC that also filed Chapter 11, owes several million dollars.
BizSense was unable to reach Dr. Marcus Brown, who ran the practice.
The local creditors include:
Dr. Moinuddin Ali: $190,000
B. Alexander Consulting: $6,500
Care on Call: $18,000
Deal & Lachney: $170,000
Dominion Power: $2,000
Hirschler Fleischer: $1,863
Kleane Kare: $3,673
Saunders Cary & Patterson: $20,000
Siemens: $327,245
Dr. Bernard Sidale: $205,000
Creditors for Harrison Broad LLC include:
Capital Source: $260,000
City of Richmond: $32,000
Siemens: $400,000
Aaron Kremer is the BizSense editor. Please send news tips to Editor@richmondbizsense.com.
