Astria Health, a three-hospital health system based in Sunnyside, Wash., aims to emerge from bankruptcy by the end of 2019, according to the Yakima Herald-Republic.
Astria Health filed for Chapter 11 bankruptcy protection in May. At that time, the health system said it was facing a shortfall in cash flow due to issues with the company it contracted with to manage its billing in August 2018. The unidentified company failed to process a significant number of accounts receivable, leading to a backlog of unpaid claims.
"Although hospital leadership has actively managed the supply chain to ensure necessary supplies for patient care, this delay in cash collections has now become severe enough to potentially disrupt the organization's ability to pay for crucial items in a timely matter," Astria Health wrote in a May 6 news release, according to the Yakima Herald-Republic.
The health system has switched revenue cycle vendors and is reallocating resources as it prepares to emerge from bankruptcy.
Astria Health is laying off an undisclosed number of employees and consolidating leadership. The goal is to expand employee resources bedside and have several leaders oversee employees at all of Astria's hospitals, a spokesperson told the Yakima Herald-Republic.
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