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Court Approves Sale of Bankrupt Medical Park Hospital to IASIS

The bankrupt Medical Park Hospital in Hope, Ark., now has a new owner, as the U.S. Bankruptcy Court for the Western District of Arkansas approved its sale to Wadley Regional Medical Center in Texarkana, Texas, and its parent company, Franklin, Tenn.-based IASIS Healthcare.

Brim Holdings of Texas, an affiliate of IASIS, will actually purchase Medical Park Hospital, which filed for Chapter 11 bankruptcy in May of this year. Wadley Regional provided the financially-beleaguered Medical Park Hospital with interim financing to help it pay employees, bills and other day-to-day expenses during the bankruptcy proceedings.

"After having been involved with the hospital for several months now, Wadley Regional Medical Center is pleased that its parent company has been approved to become the new owner of Medical Park Hospital," Wadley Regional CEO Tom Gilbert said in a news release. "Since the beginning of this process, our goal has been to maintain a healthcare presence in Hope, a community to which we already have ties, and knowing that we are now so close to achieving that goal is very exciting."

Medical Park Hospital was previously owned by James Cheek, who was convicted in February for failure to pay $1.8 million in payroll taxes at another hospital he owned with Herschel Breig in Lubbock, Texas. Medical Park Hospital is the only hospital along Arkansas' Interstate 30 corridor, and it will now be known as Wadley Regional Medical Center at Hope.

More Articles on Hospital Bankruptcies and Sales:

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Distressed Assets May Jeopardize Autonomy During the M&A Process

McLaren Health Finalizes Cheboygan Memorial Hospital Purchase, Changes Name

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