Texas Hospital Plans File for Bankruptcy Due to Mounting Debt

by San Antonio Attorney

North Texas Medical Center, which is located in Gainesville, is exhausting all means possible to keep the hospital from closing.

The 60-bed medical center, which is operated and owned by the Gainesville Hospital District, owes $7 million to creditors.  The hospital is reportedly hoping to regain its financial footing through a partnership with King of Prussia, which is a Universal Health Services based in Pennsylvania.

The agreement involves leasing five structures of Texoma Medical Center in Denison, Texas, which UHS’ owns, and transferring control of the hospital.

Ramin Roufeh, MD, temporary CEO of North Texas Medical Center, said the board of directors has also opted to file for Chapter 9 bankruptcy — a type of bankruptcy proceeding that provides protection to financially distressed municipalities from creditors while it works out a repayment plan.

Officials of the hospital are looking forward to conclude the partnership with UHS and eventually file the bankruptcy petition.

According to reports, hospitals across the United States are filing for bankruptcy every year.  Even though the reasons are similar, recently two factors in particular are being cited: lesser health networks and growing prices for medical care.

Companies and individuals often file for bankruptcy to deal with creditors.   Bankruptcy provides protection from debt collection efforts of creditors.  But bankruptcy law is complicated and so it is advisable for those with financial problems to seek help from competent San Antonio Attorneys that handle bankruptcy cases.

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