Rock Regional Hospital in Derby, Kan., has permanently closed after a federal judge allowed its eviction to proceed, ending a months-long legal battle over unpaid rent, according to NBC affiliate KSN.com.
“Rock Regional Hospital is permanently closed,” the hospital wrote in a Jan. 7 Facebook post. “There is no emergency care available at this location. If you are experiencing a medical emergency, please call 911 or go to the nearest emergency department.”
The closure follows a Jan. 5 ruling from a bankruptcy court, which determined the hospital’s lease had been legally terminated by a prior state court decision and could not be revived under bankruptcy protection, according to the Derby Informer. The judge lifted a temporary stay that had delayed eviction and allowed the building’s owner, CBC Derby, to move forward with reclaiming the property.
Rock Regional filed for Chapter 11 bankruptcy on Dec. 7 — three days before a lease termination deadline — in an effort to restructure and remain open. The hospital owes $60.6 million in unsecured claims — including nearly $24 million in unpaid rent to the landlord — stemming from missed payments dating back to 2021, according to ABC affiliate KAKE.
A temporary agreement allowed Rock Regional to continue operations through Jan. 6, with significantly reduced weekly rent and a $108,000 lump-sum payment due Jan. 2. However, the final payment was initiated but not completed due to insufficient funds and the court denied the hospital’s request for more time to make the payment, citing its failure to anticipate account balance issues.
The 30-bed hospital, which opened in 2019, had been operating under financial strain for several years and faced multiple eviction notices, including a formal lease termination in January 2023, according to the Derby Informer.. The most recent ruling clears the way for the building owner to take over, though both parties have agreed to a managed transition rather than an abrupt closure.
A hearing on unresolved financial matters, including cash collateral, is set for Jan. 14.
Becker’s will update this story as more information becomes available.
