Financial troubles surface at another Forest Park hospital after flagship facility closes

Forest Park Medical Center's flagship hospital in Dallas closed Oct. 30 after failing to make payroll, and now the physician-owned health system's hospital in Southlake, Texas, is facing financial troubles, according to a Dallas Business Journal report.

Forest Park Medical Center in Southlake and its founding physicians defaulted on a loan and owe Commerce Bank of Missouri nearly $3.5 million, according to a lawsuit the bank filed last week. The bank claims the hospital defaulted by failing to meet minimum operating cash flow and net worth requirements and failing to provide complete financial statements for 2014, according to the report.

The hospital's default is the latest in the Forest Park system's troubles. Along with closing its flagship facility, the system closed its hospital in San Antonio Oct. 15.

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