Financially troubled Texas hospital network lands back in bankruptcy court

Financially distressed Forest Park Medical Center, a network of physician-owned facilities based in Dallas, is back in bankruptcy court, as its facility in Southlake, Texas, has filed for chapter 11 bankruptcy protection.

FPMC's struggles surfaced last year, and its Southlake hospital is the latest to land in bankruptcy. The hospital network closed its flagship facility in Dallas last October, resulting in 196 layoffs.

In November, Commerce Bank of Missouri filed a lawsuit alleging FPMC's hospital in Southlake and its founding physicians defaulted on a loan and owe the bank nearly $3.5 million. The bank claimed 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 a bankruptcy petition filed Tuesday, the Southlake hospital has between $10 million and $50 million in estimated liabilities and 200 or more creditors.

More articles on healthcare finance:

South Carolina hospital closing down Thursday
Hospital tax exemptions halted in Illinois
Missouri hospital ceases operations: 5 things to know

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