Tennessee health system files for bankruptcy, says it owes CHS $28M

Knoxville, Tenn.-based Curae Health and its three hospitals in Mississippi filed for Chapter 11 bankruptcy Aug. 24.

Filings in the bankruptcy case show Curae and the three hospitals have $3.4 million in cash and cash equivalents and $96 million in liabilities, according to the Monroe Journal.

Curae listed the creditors who have the largest unsecured claims against the health system in its bankruptcy petition. According to the petition, Curae owes $28.6 million to Franklin, Tenn.-based Community Health Systems.

The three Mississippi hospitals included in Curae's bankruptcy case are Gilmore Memorial Hospital in Amory, Panola Medical Center in Batesville and Northwest Mississippi Medical Center in Clarksdale. All three hospitals were previously owned by CHS.

In a statement to the Monroe Journal, Curae Health said the hospitals will operate as normal throughout the bankruptcy process.

"Many rural hospitals across the country have faced year-over-year financial challenges due to government funding cuts, unfunded care mandates and other pressures," Curae said. "Our hospitals were not immune to these issues and after exhausting other possibilities, the decision was clear that the hospitals could not continue to operate under mounting debt and tightening financial resources."

Curae told the Monroe Journal it expects to sell the hospitals as part of the bankruptcy proceedings.

More articles on healthcare finance:

Texas hospital lays off 40% of administrative staff amid financial troubles
Mississippi hospital files for bankruptcy
Texas microhospital forced to close due to sharp decline in reimbursement

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