A hospital in Leesville has announced that it officially entered Chapter 11 bankruptcy on Oct. 18.

Doctors Hospital at Deer Creek (DHDC), a physician-owned facility, made the announcement citing a former hospital administrator as the root of its financial hardship.

Speaking to the media, Dr. Gregory D. Lord said: “the Chapter 11 filing was necessitated by a financial crisis resulting from Medicare overpayments caused by the actions of a prior administrator at the hospital."

Lord is a managing member of the hospital and explained that while the hospital is able to pay back select overpayments to Medicare, it does not have enough money to pay back overpayments that are highly likely to come in the near future.

"Because of this, Medicare is likely to offset the overpayments owed by withholding all future Medicare payments to DHDC," Dr. Lord said. "Once Medicare begins offsetting the overpayments from future payments, DHDC will have to close its hospital, as there will be insufficient financial resources for the hospital to continue operations."

DHDC has decided to pay their current debts and attempt to find someone to buy the hospital. DHDC has submitted a purchase proposal to the bankruptcy court. Sources are reporting that Bankruptcy Court of Western District of Louisiana has ordered that the hospital will remain in possession of it's property and will continue operations and management.

A status hearing is scheduled for Feb. 20th in the Bankruptcy Courtroom in Alexandria.In its bankruptcy petition, DHDC listed both its assets and liabilities as between $1 million and $10 million.