Industry News: Healthcare Bankruptcies

While numerous healthcare companies and facilities are looking for new ways to grow and expand, some hospitals still face financial troubles challenging enough to require bankruptcy. Whether due to increased competition or because of reimbursement and revenue challenges, many factors lead hospitals, medical centers and health systems to file for bankruptcy.

Get more information on five hospitals or health systems that have filed for bankruptcy or announced plans to file bankruptcy paperwork since November 2016.

  1. The public trust that operates Atoka (Okla.) County Medical Center filed for Chapter 9 bankruptcy on Jan. 10. The critical access hospital is approximately $16 million in debt.
  2. North Philadelphia Health System filed for Chapter 11 bankruptcy Dec. 30 after years of financial troubles. NPHS currently operates two facilities in Philadelphia: Girard Medical Center, a 168-bed psychiatric hospital, and Goldman Clinic, a substance abuse treatment center.
  3. Central Iowa Healthcare, which includes a 49-bed acute care hospital, an outpatient center and four primary care clinics, filed for Chapter 11 bankruptcy Dec. 20. As part of its bankruptcy filing, CIH submitted plans to sell many of its assets to UnityPoint Health-Waterloo, an affiliate of UnityPoint Health.
  4. North Texas Medical Center‘s board decided in December to file for Chapter 9 bankruptcy. Hospital officials expect to file the bankruptcy petition in the next few months.
  5. Gulf Coast Medical Center in Wharton, Texas, filed for Chapter 7 bankruptcy Nov. 21. The hospital significantly scaled back services in 2016 and closed in late November.

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