A series of recent announcements proved the continuing uncertainty of the medical field. Eight hospitals located throughout the United States filed for bankruptcy protections. Although there are some areas of the country where the medical field is on an upswing, there are just as many showing what happens when the entire industry goes through a downturn. There is some unpredictability to this, however, it just shows how important it is for upper hospital management and CFOs to do everything possible to collect on every single claim, even those that have gone through their three state-level appeals and need to be sent through the Federal ERISA process.
Upcoming Hospital Bankruptcies
According to sources, a number of hospitals have recently announced that they are in financial trouble. Let’s recap some of them, starting with, “Walker County Hospital Corp., which does business as Huntsville (Texas) Memorial Hospital, filed for Chapter 11 bankruptcy Nov. 11. Significant financial losses and failed attempts to create a network of clinics are among the factors that pushed WCHC, a private nonprofit organization, into bankruptcy.”
Another is, “Lockport, N.Y.-based Eastern Niagara Hospital [which] filed for Chapter 11 bankruptcy Nov. 7. The hospital took several steps to cut costs before entering bankruptcy, including eliminating jobs and shutting down its maternity unit. Hospital leadership said the bankruptcy process will allow the organization to address legacy debt obligations.”
“Southcross Hospital in San Antonio, two freestanding emergency rooms and their operator filed for Chapter 11 bankruptcy protection Nov. 3. At that time, the organizations had more than $10 million in debt.”
A few others announced earlier in the fall, including, “Williamson (W.Va.) Memorial Hospital entered Chapter 11 bankruptcy protection on Oct. 21. In its bankruptcy petition, Williamson Memorial Hospital listed its assets as between $1 million and $10 million and listed its liabilities as within the same range.”
And, “Calais (Maine) Regional Hospital entered Chapter 11 bankruptcy Sept. 17. At that time, the 25-bed hospital owed roughly $25 million to nearly 1,900 creditors. According to documents filed in the bankruptcy case, Calais Regional Hospital has incurred losses for several years and faces a cash shortfall that requires restructuring of its balance sheet. The hospital’s CEO said he hopes the bankruptcy process will allow the hospital to restructure its debts and implement operational changes to remain open.”
Additional hospitals filed back in August and June. They are, “Westlake Hospital in Melrose Park, Ill., filed for Chapter 7 bankruptcy liquidation Aug. 6. Los Angeles-based Pipeline Health acquired the hospital from Dallas-based Tenet Healthcare in January. Pipeline revealed plans to shut down Westlake Hospital a few weeks after the transaction closed, saying financial losses exceeded projections. The hospital closed in August.”
And, “Philadelphia Academic Health System and a few of its subsidiaries, including Hahnemann University Hospital and St. Christopher’s Hospital for Children in Philadelphia, entered Chapter 11 bankruptcy protection on June 30. Hahnemann University Hospital closed in September, and PAHS sold St. Christopher’s Hospital for Children.”
Finally, ” Springfield (Vt.) Medical Care Systems filed for Chapter 11 bankruptcy protection on June 26. The health system, which includes 25-bed Springfield (Vt.) Hospital and nine community health centers, said no layoffs are planned and operations will continue as normal during the bankruptcy process.”
Do You Have Aged Claims?
If you have aged, unpaid claims that have gone through the state-level appeal process, and are ready to file Federal ERISA appeals on them, contact us. We have a solid track record of success. Remember that every penny counts when you’re running a hospital or healthcare business, because you never know when a downturn is going to occur. Reach out to us today, either by phone or through the contact form on our website.
