2 Texas hospitals file for bankruptcy: 5 things to know

Forest Park Medical Center's hospitals in Austin and Fort Worth, Texas, have filed for chapter 11 bankruptcy protection, according to the Dallas Business Journal.

Here are five things to know about the for-profit health system's financial troubles and its hospitals' bankruptcy filings.

1. The hospital in Fort Worth owes $11.1 million to Dallas-based FPMC Forth Worth Realty Partners and owes more than $1.1 million in management fees to The Management Company at Forest Park Medical Center, according to the Dallas Business Journal.

2. The hospital in Austin has been vacant since its construction was completed last year. The hospital has about 10 unsecured debtors that are collectively owed more than $500,000.

3. Other Forest Park facilities are facing financial troubles. In September, the system's hospital in Frisco, Texas, filed for chapter 11 bankruptcy protection.

4. The health system's financially distressed hospital in San Antonio closed in October, putting 139 people out of work.

5. Forest Park's flagship hospital in Dallas also closed last October, resulting in 196 layoffs. The morning the hospital closed, Todd Furniss, CEO of Dallas-based private equity firm glendonTodd Capital and chairman of The Management Company at Forest Park Medical Center, sent an email to employees informing them they would not be paid because of an "unexpected funding issue." In December, a former nurse at the facility filed a lawsuit against the hospital seeking unpaid wages.

More articles on healthcare finance:

Illinois hospital closes; OSF Healthcare converts building into urgent care center
Steward's losses mount as system takes a long-term view
Missouri hospital to close this month as BJC consolidates services

 

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