The health system, part of the Jack County (Texas) Hospital District, entered Chapter 9 bankruptcy — a bankruptcy proceeding that offers distressed municipalities protection from creditors while a repayment plan is negotiated. The health system entered bankruptcy with assets totaling between $10 million and $50 million and liabilities within the same range, according to bankruptcy court documents.
Faith Community Health System filed a list of its 20 largest unsecured creditors as part of the bankruptcy case, which shows it owes Blue Cross Blue Shield of Texas an arbitration award of more than $29.3 million. The health system’s second largest unsecured debt is a $23.9 million bank note owed to Regional Capital Advantage, Inc., according to bankruptcy documents.
More articles on healthcare finance:
Average hospital expenses per inpatient day across 50 states
How CHS, Tenet, HCA and UHS fared in Q4
Mayo Clinic’s annual operating income tops $1B for first time
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.