Creditors seek to force 2 Arizona hospitals into bankruptcy

Creditors of Gilbert (Ariz.) Hospital and Florence (Ariz.) Hospital at Anthem are seeking to force the hospitals into bankruptcy in an attempt to collect $1.96 million they claim the affiliated hospitals owe, according to court documents.

The involuntary Chapter 11 bankruptcy petition for Florence Hospital — filed jointly by three employees — seeks $46,650 in wages. An unsecured creditors trust, the hospital's founder and CMO Timothy Johns, MD, and a Phoenix-based law firm filed Gilbert Hospital's involuntary bankruptcy petition, which seeks more than $1.9 million.

This is the second time the hospitals have landed in bankruptcy court. The hospitals filed for voluntary Chapter 11 bankruptcy in 2014, according to court documents.

In court documents filed May 1, creditors claim the hospitals have failed to make lease payments for months and that the facilities are "on the brink of complete shutdown."

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