Editor's note: This story has been updated after previously reporting that Lion Star was closing its Nacogdoches (Texas) Memorial Hospital obstetrics unit based off of a Feb. 23 Nacogdoches County Hospital District statement. A Lion Star spokesperson confirmed that the hospital is not closing its obstetrics unit.
Lion Star, the group that operates Nacogdoches (Texas) Memorial Hospital, is closing four of its clinics on March 22, which will result in the layoffs of under 50 people with no additional layoffs planned, a Lion Star spokesperson told Becker's.
The clinics affected are Nacogdoches-based Care First Women's, Care First Garrison (Texas), Nacogdoches-based Memorial Family Medicine, and the OB-GYN practice of Kim Schaus, MD, in Nacogdoches.
"The decision to close these clinics was not made lightly, but out of necessity due to our struggle with the Nacogdoches County Hospital District resulting in Lion Star's recent chapter 11 bankruptcy filing," Sean Fowler, CEO of Lion Star, said in a statement shared with Becker's.
Lion Star filed for Chapter 11 bankruptcy in November, with the filing stating that the hospital owes up to $50 million to creditors.
"Until the clinics close, our clinics will continue to operate as usual, serving patients and assisting with medical records and other transition items," Mr. Fowler said. "We are working diligently to minimize any disruption to your healthcare services and ensure a smooth transition to alternative providers."