Texas health system files for bankruptcy, owes BCBS $29M

Faith Community Health System, a single-hospital system based in Jacksboro, Texas, filed for bankruptcy protection on Feb. 29.

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.

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