Financial troubles force Texas health system to shut down

Rockdale, Texas-based Little River Healthcare closed all of its facilities Dec. 4, including two hospitals and several medical clinics.

In a letter sent to employees Nov. 30, Little River Healthcare, which entered Chapter 11 bankruptcy in July, said it would shut down the hospitals and clinics Dec. 7 because it was unable to find new owners for the facilities. The health system ceased operations Dec. 4 "due to unfortunate financial conditions," according to a message on its website.

Little River Healthcare is seeking to convert its bankruptcy case to Chapter 7, allowing it to liquidate its assets. In documents filed in the case, the health system claims its lender, Monroe Capital Management, has denied several funding requests, including one totaling $700,000 for the week ended Nov. 30.

Monroe Capital Management said it denied the budget requests for several reasons, including the health system's inability to accurately forecast or perform.

Little River Healthcare laid off a total of 298 workers when it shut down, a Texas Workforce Commission spokesperson told KWTX.

More articles on healthcare finance:

Outlook is negative for nonprofit hospital sector, Moody's says
CHI's operating loss shrinks to $73M in Q1
10 hospitals seeking CFOs

 

 

© Copyright ASC COMMUNICATIONS 2018. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months