Fairbanks health center to file for bankruptcy

A regional community health center that provides mental health services in Fairbanks says it will file for bankruptcy.

The Fairbanks Daily News Miner reports the board of the Fairbanks Community Behavioral Health Center voted unanimously Tuesday to pursue bankruptcy protection.

The center has about 60 employees but has been struggling to make its payroll.

An audit indicated the center has money to continue operating for only another three weeks.

Board President Barbara Burch says the board became aware of financial problems in May. She says heavy debt and two major medical claims affected finances and a backlog of Medicaid reimbursements affected cash flow.

The center will continue services to clients during the bankruptcy process.