Texas hospital files for bankruptcy due to out-of-network payment challenges

Forest Park Medical Center at Frisco (Texas) has filed for chapter 11 bankruptcy protection, according to a Dallas Business Journal report.

The hospital, which is part of the Dallas-based Forest Park Medical Center network of physician-owned facilities, is showing signs of financial distress. Todd Furniss, chairman of The Management Company at Forest Park Medical Center, told the Dallas Business Journal the physician-controlled board at the Frisco facility felt bankruptcy protection was necessary due to financing challenges and a reduction in out-of-network payments from insurance companies that the hospital relies on.

"It's a sad day, but the board felt this is the best action to move forward," said Mr. Furniss. "They want to do the best they can for the physicians to continue serving patients."

The case is pending in U.S. Bankruptcy Court for the Eastern District of Texas.

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