Less than three weeks into December, the month has seen a new wave of healthcare bankruptcies as three providers across Arizona, California and Kansas have sought or are planning to seek bankruptcy protection.
The filings cite the need to preserve operations, restructure finances and secure long-term stability. They also highlight the ongoing financial strain weighing on many community hospitals and safety-net providers across the U.S. as they look to maintain care access while pursuing partnerships or restructurings to remain viable.
Here are three healthcare bankruptcies Becker’s has reported on in December:
1. Flagstaff, Ariz.-based North Country HealthCare, a federally qualified community health center, will seek Chapter 11 bankruptcy Dec. 19 and has reached an acquisition agreement with Tucson-based El Rio Health, the Arizona Daily Sun reported. “El Rio has signed a non-binding term sheet with North Country HealthCare about a potential transaction,” Clinton Kuntz, president and CEO of El Rio Health, said in a Dec. 18 statement shared with Becker’s. “If the transaction is approved, it would help sustain access to primary care in northern Arizona.”
North Country HealthCare CEO Anne Newland, MD, said in a Dec. 15 email to employees, obtained by the Sun, that employee paychecks would not be disrupted, and patient care would continue as usual.
2. Derby, Kan.-based Rock Regional Hospital filed a petition in early December for Chapter 11 bankruptcy protection to help maintain patient care and hospital operations. The filing will allow the hospital to seek financial restructuring while also serving the community without interruption.
3. Oroville (Calif.) Hospital and its parent organization, OroHealth, filed petitions Dec. 8 for Chapter 11 bankruptcy to help facilitate a transaction to secure the hospital’s long-term future. The filing will allow the hospital to continue operating while it seeks a partner with the financial and operational capacity to invest in the organization and support its mission.
