6 hospital bankruptcies in 2023

A rural Texas hospital became the latest to file for bankruptcy in 2023. Here is more information about that and five other hospital bankruptcies so far this year:  

1. Trinity Regional Hospital Sachse (Texas) filed for bankruptcy two years after opening. The rural hospital has since defaulted on around $70 million of municipal bonds that were issued in 2020. Trinity Regional Hospital Sachse's owner listed assets of $50 million to $100 million and liabilities of $100 million to $500 million on the bankruptcy petition. The hospital aims to find a buyer.

2. Mercy Iowa City filed for Chapter 11 bankruptcy Aug. 7. The filing includes a reference to a letter of intent between Mercy Iowa City and the state of Iowa that outlines a plan to transition the hospital to become part of UI Health Care. The affiliation requires approval from the university board of regents, the state of Iowa, and the bankruptcy court. 

3. Martin General Hospital, a 49-bed facility in Williamston, N.C., suspended operations Aug. 3 and plans to file for bankruptcy. The hospital, which lost $13 million in 2022, cited financial challenges related to declining population and utilization trends as reasons for the decision. 

4. San Benito Health Care District, the board overseeing Hollister, Calif.-based Hazel Hawkins Memorial Hospital, voted May 22 to file for Chapter 9 bankruptcy. The hospital said it will remain open and operational "while leadership looks for a strategic partner or buyer."

5. Montebello, Calif.-based Beverly Hospital filed for Chapter 11 bankruptcy April 19. The hospital secured $13 million in financing to keep operating as it looked for a buyer. Hospital officials said rising costs outpacing government reimbursement rates were to blame for the situation. Beverly has unsuccessfully attempted to merge with three health systems.

6. Madera (Calif.) Community Hospital filed for Chapter 11 bankruptcy March 10. The hospital officially closed at midnight Dec. 30 after Livonia, Mich.-based Trinity Health's plan to buy the hospital fell through. Trinity already owns and operates Saint Agnes Medical Center in Fresno, Calif. Madera Community leaders had hoped to avoid bankruptcy and explored a number of options, including looking for another organization to take over operations. But without a buyer lined up, the hospital proceeded with the bankruptcy filing. 

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