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22 CFO / FINANCE 9 Hospital Bankruptcies in the First Half of 2017 By Ayla Ellison F rom reimbursement landscape challenges to dwin- dling patient volumes, many factors lead hospitals to file for bankruptcy. Here are nine hospitals that have filed for bankruptcy since Jan. 1, beginning with the most recent. 1. Kennewick, Wash.-based Trios Health filed for Chapter 9 bankruptcy June 30. Trios Health includes a full-service community hospital, a women's and chil- dren's specialty hospital, outpatient specialty offices and urgent care clinics. 2. Walnut Hill Medical Center in Dallas filed for Chapter 7 bankruptcy June 6 aer abruptly closing just four days prior. 3. Milledgeville, Ga.-based Oconee Regional Medical Center filed for Chapter 11 bankruptcy May 10. On June 30, a bankruptcy judge approved the sale of ORMC to Macon, Ga.-based Navicent Health. 4. Campbellton-Graceville (Fla.) Hospital filed for Chap- ter 11 bankruptcy May 5 to lower its high debt load. 5. Green Valley (Ariz.) Hospital filed for Chapter 11 bankruptcy April 3. In its bankruptcy documents the hospital says it was "poorly managed" and "undercapi- talized" since it opened about two years ago. 6. Humble (Texas) Surgical Hospital filed for Chap- ter 11 bankruptcy Feb. 24. The hospital filed its bankruptcy petition after a judge ordered it to pay Hartford, Conn.-based Aetna $51.4 million in a sev- en-year-old court battle over the hospital's out-of-net- work charges. 7. Louisiana Heart Hospital in Lacombe filed for Chapter 11 bankruptcy Jan. 30. e hospital shut down Feb. 10 and closed its 16 medical clinics Feb. 28. In June, New Orleans-based Ochsner Health System signed an agree- ment to lease Louisiana Heart Hospital and revealed plans to open long-term care, skilled nursing and inpa- tient rehabilitation units at the facility. 8. North Texas Medical Center in Gainesville, which is owned by the Gainesville Hospital District, filed for Chapter 9 bankruptcy Jan. 17. With the hope of regain- ing its financial footing, the hospital's board approved a partnership with King of Prussia, Pa.-based Universal Health Services in December. 9. e public trust that operates Atoka (Okla.) County Medical Center filed for Chapter 9 bankruptcy Jan. 10. At that time, the critical access hospital was about $16 million in debt. n Georgia Hospital Lands Last-Minute Buyer, Avoids Closure By Ayla Ellison O ptim Medical Center-Jenkins in Millen, Ga., will no longer close after scoring a buyer less than two weeks before it was slated to shut down, according to Georgia Health News. Savannah, Ga.-based Optim Healthcare announced in April it planned to close Optim Medical Center-Jenkins on June 24. Optim said the hospital has faced financial challenges for several years caused by dwindling patient volumes and declining reimburse- ment from government payers. Optim said the hospital also has ma- jor infrastructure challenges, which would require significant invest- ments to address. On June 16, less than two weeks before the hospital was slated to shut down, Optim Healthcare transferred ownership of the facility to Sunrise, Fla.-based GA Medical Holdings, according to Georgia Health News. GA Medical Holdings also owns hospitals in Dahlonega, Ga., and Centre, Ala., Jeff Brantley, Millen city administrator and member of the local hospital authority, told The Atlanta Journal-Constitution. n Analysts: For-Profit Payers to Grow Medicare, Medicaid Businesses Regardless of Health Law By Morgan Haefner L arge for-profit health insurers can still run profitable Medicare and Medicaid businesses regardless of whether senators pass the Republican healthcare bill this summer, analysts told CNBC. Following the GOP's decision to postpone voting on the Better Care Reconciliation Act, Citi analysts issued a buy rating for Hartford, Conn.-based Aetna and Louisville, Ky.-based Humana. They said the companies have the potential to increase profits from their govern- ment businesses. Medicaid represents 13 percent of Aetna's revenue, the report states. The payer aims to increase that percentage following recent man- aged care contract wins in Nevada and Virginia. As for Humana, Medicare reflects roughly 80 percent of its revenue. Analysts predict the payer can still grow its Medicare business as more adults reach age 65 and qualify for the program. In a research note obtained by CNBC, Citi analyst Ralph Giacobbe said, "When you step back from the uncertainty created by the cur- rent political landscape and consider the larger economics around how managed Medicaid helps states to save money and improve outcomes, it is likely to continue to be an indispensable piece of the solution for the future of healthcare." n