Hospitals in Dallas and Fort Worth file for bankruptcy: 6 things to know

Forest Park Medical Center's hospitals in Dallas and Fort Worth, Texas, have filed for chapter 11 bankruptcy protection, according to a Dallas Business Journalreport.

Here are six things to know about the financially troubled hospitals and their bankruptcy filings.

1. Forest Park's hospital in Dallas closed Oct. 30, resulting in 196 layoffs.

2. The system's Fort Worth hospital was put up for sale in October after the hospital missed an interest payment on a $66.8 million construction loan.  

3. Both hospitals were set for foreclosure auction on Dec. 1. However, with the bankruptcy filing, the auction will not take place.

4. Other Forest Park facilities are also facing financial troubles. In September, the system's hospital in Frisco, Texas, filed for chapter 11 bankruptcy protection. A bankruptcy judge recently decided that facility can be sold at auction, according to the Dallas Business Journal.

5. Forest Park's hospital in San Antonio closed in October. More than 130 employees were laid off when the facility closed.

6. The system's hospital in Southlake, Texas, and three of its founding physicians defaulted on a loan and owe Commerce Bank of Missouri nearly $3.5 million, according to a lawsuit filed in early November.

More articles on healthcare finance:

OSU Wexner's operating margin cut in half on CFO's recommendation
8 hospital CFOs in the headlines
Duke University Health, UNC Health Care end fiscal year on high note: 9 things to know

 

 

 

 

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months