California Hospital for Low Income Patients Shuts its Doors After posting several years in a row of deficits, in the tens of millions of dollars, Doctors Medical Center of San Pablo, California closed on April 21, 2015. Doctors Medical Center, a public hospital, is operated by the West Contra Costa Healthcare District, and the district officials in the months following the closure are trying to promote the hospital for a …Read More

Operator Shuts Doors Unexpectedly In spite of the efforts of local lawmakers, Yadkin Valley Community Hospital closed its doors on May 22, 2015. The small community hospital, located in the town of Yadkinville, North Carolina, had agreements with their operator, Hospital Management Consulting, to continue management until the end of July. The reason for the hospital closure was due to a lack of agreement between the hospital and HMC on …Read More

Kentucky Hospital Seeking New Owners After years of operation, under millions of dollars in debt, New Horizons Medical Center in Owenton, Kentucky filed for Chapter 11 bankruptcy protection on May 29, 2015. New Horizons Medical Center is located in Owen County and serves the neighboring counties of Gallatin and Carrol as well.  The Kentucky hospital has been in operation since 1951. Not the First Financial Struggle for the Hospital In …Read More

Elected Officials Opposed to the Decision El Paso Children’s Hospital filed for Chapter 11 bankruptcy protection on May 19, 2015. This took place amidst severe disagreements with local lawmakers and the entities that managed the health care facility in El Paso, Texas. University Medical Center had been managing El Paso Children’s Hospital since its opening in February 2012. UMC claims it’s owed over $90 million in unpaid rental and service …Read More

New Realities Causing Bankruptcies and Closures Hospitals located in rural areas throughout the nation are finding it harder than ever to keep themselves open and in financially healthy situations. Lynn Butler, a lawyer based out of Austin, Texas who has worked on hospital bankruptcy cases, commented on trends in healthcare in remote parts of the country. She said the situation in the near future didn’t look hopeful. “We’ve all seen the crash that’s …Read More

Florida Hospital Looking for Buyer While CEO in Jail Officials at Hollywood Pavilion Hospital and the Hollywood Hills Rehabilitation Center, of Hollywood, Florida, have decided that the best move forward for their financially struggling hospital and nursing care facility, is to seek being sold at a bankruptcy auction. The move took place while the hospital’s former CEO, Karen Kallen-Zury, is in the middle of serving a 25 year prison term for …Read More

Financial Climate Preventing Hospitals From Starting Over While it’s often advised that financially struggling individuals file for bankruptcy, and that avoiding bankruptcy could be disastrous, a study shows that the situation for hospitals surviving a filing for bankruptcy protection is bleak. With tougher financial climates in which hospitals find themselves, bankruptcy is no longer seen as a guaranteed step forward for a health care institution.  Nearly two thirds of hospitals that …Read More

Texas Hospital Opts to Avoid Takeover In response to their struggling financial situation, Children’s Hospital in El Paso, Texas has decided to consider filing for bankruptcy protection rather than negotiate a takeover with their biggest creditor, University Medical Center (UMC). UMC, the county owned hospital system, claims that they’re owed nearly $90 million from El Paso Children’s Hospital. UMC doesn’t believe that bankruptcy protection is the best path for Children’s …Read More

Prime Healthcare Services Backs off Deal Plans for the Ontario, California based Prime Healthcare Services to buy the Daughters of Charity Heath System have collapsed. This has moved the financially struggling health system to a situation where filing for bankruptcy is potentially their best move. “Every option is now on the table, including bankruptcy,” said Robert Issai, Chief Executive of the Daughters of Charity chain. The deal called for Prime Healthcare to …Read More

Hospitals Faced Tough Challenge to Stay Open Hospitals can close for any number of reasons.  Often, the cause will be a struggling financial situation which may be due to poor management, too many patient bankruptcies, lawsuits or low reimbursement rates from insurance companies. Additionally, government bodies will often step in and close down a state or county funded hospital for various reasons, such as a preference for privately owned hospitals, or …Read More