14 latest hospital bankruptcies

From reimbursement landscape challenges to dwindling patient volumes, many factors lead hospitals to file for bankruptcy.

Here are 14 hospitals and health systems that filed for bankruptcy since Jan. 1, beginning with the most recent:

1. Pineville (Ky.) Community Hospital Association filed for Chapter 7 bankruptcy on Nov. 29. PCHA owned and operated Pineville Community Hospital, now called Southeastern Medical Center, until entering an agreement with Fort Lauderdale, Fla.-based Americore Health in 2017. PCHA still owns the hospital real estate, but it entered a long-term lease deal and sold non-real estate assets to Americore.

2. Promise Healthcare Group, a hospital and nursing home chain based in Boca Raton, Fla., filed for Chapter 11 bankruptcy on Nov. 4. Promise and more than 40 of its affiliates entered bankruptcy after years of financial troubles. In bankruptcy court documents, Promise reported more than $565 million in combined debt.

3. Doctors Hospital at Deer Creek, a physician-owned hospital in Leesville, La., entered Chapter 11 bankruptcy Oct. 18. In documents filed in the bankruptcy case, a managing member of the hospital said a former hospital administrator is to blame for the hospital's financial troubles.

4. Sonoma West Medical Center, Inc., which formerly managed a hospital in Sebastopol, Calif., entered Chapter 7 bankruptcy Sept. 26. The decision to enter bankruptcy came after Anthem and its affiliates in nine states sued SWMC and the company that managed the hospital's toxicology program June 1. The lawsuitalleges SWMC engaged in a fraudulent billing scheme.

5. The hospital district that operated Coalinga (Calif.) Regional Medical Center before it closed earlier this year filed for Chapter 9 bankruptcy Sept. 5. At that time, Coalinga Regional Medical Center CEO Wayne Allen said the hospital owed $5 million to unsecured creditors — $250,616 of which it owed to 115 employees for accrued vacation and sick time.

6. El Segundo, Calif.-based Verity Health operated six hospitals in California when it entered Chapter 11 bankruptcy Aug. 31. Santa Clara County (Calif.) acquired two hospitals from Verity in December.

7. Magee (Miss.) General Hospital filed for Chapter 11 bankruptcy Aug. 24. The hospital entered bankruptcy protection to reorganize its debt, and officials said the facility will remain open during the bankruptcy process.

8. Knoxville, Tenn.-based Curae Health and its three hospitals in Mississippi filed for Chapter 11 bankruptcy Aug. 24. The three Mississippi hospitals included in Curae's bankruptcy case are Gilmore Memorial Hospital in Amory, Panola Medical Center in Batesville and Northwest Mississippi Medical Center in Clarksdale.

9. Rockdale, Texas-based Little River Healthcare, its parent company and several of its affiliated entities entered Chapter 11 bankruptcy July 24. The health system shut down Dec. 4.

10. Florence (Ariz.) Hospital at Anthem entered Chapter 11 bankruptcy in late May after it failed to contest an involuntary bankruptcy petition from creditors within the required 21-day timeline. The hospital closed June 18.

11. Gilbert (Ariz.) Hospital, which is affiliated with Florence Hospital at Anthem, entered Chapter 11 bankruptcy in late May and closed June 16.

12. The Miami Medical Center, a 67-bed hospital that suspendedservices in October 2017, filed for Chapter 11 bankruptcy protection March 9. The hospital was sold in auction in late June.

13. Iron County Medical Center, a critical access hospital in Pilot Knob, Mo., filed for Chapter 9 bankruptcy Feb. 21. The hospital is owned by the Iron County Hospital District.

14. Surprise Valley Health Care District, which operates 26-bed Surprise Valley Hospital in Cedarville, Calif., filed for Chapter 9 bankruptcy Jan. 4.

More articles on healthcare finance:

UPMC Pinnacle to close hospital
Private equity pushes into healthcare: 9 latest deals
CMS updates hospital price transparency requirement — again

 

 

 

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