2 Kansas hospitals file for bankruptcy

Hillsboro (Kan.) Community Hospital and Horton (Kan.) Community Hospital, both owned by affiliates of Kansas City, Mo.-based EmpowerHMS, filed for Chapter 11 bankruptcy this week.

Hillsboro Community Hospital entered Chapter 11 bankruptcy on March 13. According to documents filed in the bankruptcy case, the hospital has at least $10 million in assets and at least $10 million in liabilities. The hospital owes more than $334,000 in real estate taxes, making the Marion County (Kan.) Treasurer the unsecured creditor with the largest claim against the hospital.

Horton Community Hospital filed for Chapter 11 bankruptcy on March 14, just two days after it closed. In its bankruptcy petition, the hospital said it has less than $50,000 in assets and liabilities of between $1 million and $10 million.

Motions requesting the appointment of a trustee have been filed in both bankruptcy cases. According to the motion filed in Hillsboro Community Hospital's case, the hospital defaulted on a loan and owes Bank of Hays more than $9.6 million.  

Horton Community Hospital and Hillsboro Community Hospital are among several hospitals owned by EmpowerHMS that have faced financial challenges in recent months. Two other hospitals owned by EmpowerHMS — Lauderdale Community Hospital in Ripley, Tenn., and Washington County Hospital in Plymouth, N.C. — have entered bankruptcy since late February.

More articles on healthcare finance:

Bankrupt hospital chain's plan to offload 5 California clinics faces opposition
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Trinity Health posts $301M loss in first half of fiscal year

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