UT Medical Group Considering Bankruptcy in Wake of Verdict

UT Medical Group Inc. is considering bankruptcy after a Memphis jury found that delays in performing an urgently needed cesarean section resulted in a baby developing severe brain damage and cerebral palsy, and awarded a $33.5 million verdict against obstetrician Gary Lipscomb and UTMG. Through a statement delivered exclusively to the Memphis Business Journal, UTMG said the case remains subject to review by the appellate courts and settlement negotiations are ongoing. However, the verdict’s unusually high value has compelled the UTMG board to consider seeking protection through bankruptcy court.