Texas hospital to file for bankruptcy as debt mounts

North Texas Medical Center in Gainesville is taking drastic measures to keep its doors open.

The 60-bed hospital, which is owned and operated by the Gainesville Hospital District, is about $7 million in debt. With the hope of regaining its financial footing, North Texas Medical Center's board recently approved a partnership agreement with King of Prussia, Pa.-based Universal Health Services, according to a KXII news report.

Under the agreement, Texoma Medical Center in Denison, Texas, which is owned by UHS, will lease all five buildings on North Texas Medical Center's campus and take over operations of the hospital, according to the report.

Ramin Roufeh, MD, interim CEO of North Texas Medical Center, told KXII the hospital board has also decided to file for Chapter 9 bankruptcy — a bankruptcy proceeding that offers distressed municipalities protection from creditors while a repayment plan is negotiated.

Hospital officials expect to finalize the UHS partnership and file the bankruptcy petition in the next few months, according to the report.

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