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14 CFO / FINANCE 19 hospital bankruptcies, state by state By Ayla Ellison F rom reimbursement landscape challenges to dwindling patient volumes, many fac- tors lead hospitals to file for bankruptcy. Here are 19 hospitals that filed for bankrupt- cy between Jan. 1, 2019 and Nov. 6, 2019, listed by state: Arkansas 1. De Queen (Ark.) Medical Center filed for Chapter 11 bankruptcy on April 3. e hospi- tal, owned by an affiliate of Kansas City, Mo.- based EmpowerHMS, entered bankruptcy aer facing financial challenges for months. e hospital closed May 7. Illinois 2. 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 Ten- et Healthcare in January. Pipeline revealed plans to close Westlake Hospital a few weeks aer the transaction closed, saying financial losses exceeded projections. e hospital closed in August. Kansas 3. Oswego (Kan.) Community Hospital en- tered Chapter 11 bankruptcy on March 17. e bankruptcy filing came aer the hospi- tal, owned by an affiliate of EmpowerHMS, abruptly closed Feb. 14. 4. Horton (Kan.) Community Hospital en- tered Chapter 11 bankruptcy March 14, just two days aer it closed. e 25-bed critical access hospital, owned by EmpowerHMS, shut down aer struggling to pay utilities and missing payroll for several weeks. 5. Hillsboro (Kan.) Community Hospital, owned by an affiliate of EmpowerHMS, filed for Chapter 11 bankruptcy on March 13. At that time, the hospital owed more than $334,000 in real estate taxes, making the Marion County (Kan.) treasurer the unse- cured creditor with the largest claim against the hospital. Maine 6. Penobscot Valley Hospital, a 25-bed crit- ical access hospital in Lincoln, Maine, filed for Chapter 11 bankruptcy Jan. 29, 2019. "We have made tremendous strides over the last three years in bringing our operational costs in line with revenue," Hospital CEO Crystal Landry said in a news release. "Legacy debt is the issue here, and Chapter 11 allows us to restructure that debt so we can keep our doors open and ensure that our community continues to have a hospital close to home." 7. 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 doc- uments filed in the bankruptcy case, Calais Regional Hospital has incurred losses for sev- eral years and faces a cash shortfall that re- quires restructuring of its balance sheet. e hospital's CEO said he hopes the bankruptcy process will allow the hospital to restructure its debts and implement operational changes to remain open. Missouri 8. I-70 Community Hospital in Sweet Springs, Mo., filed for Chapter 11 bankrupt- cy on March 21. e bankruptcy filing came aer CMS ended its provider agreement with the hospital, owned by an affiliate of Empow- erHMS. I-70 Community Hospital suspend- ed its license on Feb. 15. Although the hospi- tal said the suspension would last no longer than 90 days, the hospital remains shuttered. North Carolina 9. Washington County Hospital in Plym- outh, N.C., entered bankruptcy in February aer creditors filed an involuntary Chapter 7 bankruptcy petition. e hospital, owned by an affiliate of EmpowerHMS, missed payroll Feb. 8 and suspended all medical services Feb. 14. Oklahoma 10. Prague (Okla.) Community Hospital, owned by an affiliate of EmpowerHMS, en- tered Chapter 11 bankruptcy on March 21. A judge allowed a new company to take over management of Prague Community Hospital in early March aer the hospital experienced payroll issues and lacked funds for supplies. 11. Haskell County Community Hospital in Stigler, Okla., filed for Chapter 11 bankruptcy on March 17. e hospital, owned by an af- filiate of EmpowerHMS, entered bankruptcy with less than $50,000 in assets and at least $1 million in liabilities. 12. Drumright (Okla.) Regional Hospital, owned by an affiliate of EmpowerHMS, filed for Chapter 11 bankruptcy on March 17. e hospital entered bankruptcy with less than $50,000 in assets and upward of $10 million in estimated liabilities. 13. Fairfax (Okla.) Community Hospital, owned by an affiliate of EmpowerHMS, filed for Chapter 11 bankruptcy March 17. e hospital entered bankruptcy with less than $50,000 in assets and at least $1 million in liabilities. Pennsylvania 14. Philadelphia Academic Health Sys- tem and a few of its subsidiaries, including Hahnemann University Hospital and St. Christopher's Hospital for Children in Phila- delphia, entered Chapter 11 bankruptcy pro- tection on June 30. Hahnemann University Hospital closed in September, and PAHS sold St. Christopher's Hospital for Children. Tennessee 15. Lauderdale Community Hospital in Rip- ley, Tenn., filed for Chapter 11 bankrupt- cy on March 8. e hospital, owned by an affiliate of EmpowerHMS, faced financial challenges for months, and a federal judge appointed a receiver to oversee the hospital's finances in February. Texas 16. Southcross Hospital in San Antonio, which permanently closed in October, two freestanding emergency rooms and their op- erator filed for Chapter 11 bankruptcy pro- tection Nov. 3. At that time, the organizations had more than $10 million in debt. Vermont 17. Springfield (Vt.) Medical Care Systems filed for Chapter 11 bankruptcy protection on June 26. e health system, which includes 25-bed Springfield (Vt.) Hospital and nine community health centers, said no layoffs are planned and operations will continue as nor- mal during the bankruptcy process. Washington 18. Astria Health, a three-hospital health system based in Sunnyside, Wash., filed for Chapter 11 bankruptcy protection on May 6. In a news release issued May 6, the health system said it is facing a significant shortfall in cash flow due to issues with the company it contracted with to manage its billing in Au- gust 2018. Astria said the unidentified com- pany failed to process a significant number of accounts receivable, leading to a backlog of unpaid claims. West Virginia 19. Williamson (W.Va.) Memorial Hospital entered Chapter 11 bankruptcy protection on Oct. 21. In its bankruptcy petition, Wil- liamson Memorial Hospital listed its assets as between $1 million and $10 million and listed its liabilities as within the same range. n