Forest Park Medical Center's San Antonio hospital has filed for chapter 11 bankruptcy protection, according to a Dallas Business Journal report.
The hospital, which is part of the Dallas-based Forest Park Medical Center network of physician-owned facilities, has been showing signs of financial distress. Todd Furniss, chairman of The Management Company at Forest Park Medical Center, blames the bankruptcy filing on insurers' collective refusal to contract with out-of-network providers, according to the report.
Mr. Furniss claims insurers called patients directly to instruct them to cancel procedures that were scheduled to be performed at Forest Park. "We had a 90 percent cancellation rate on the scheduled procedures for November, December and January at our hospital in San Antonio," Mr. Furniss told the Dallas Business Journal. "The insurance companies are becoming unwitting conspirators to crush the independents, and we're seeing massive market consolidation both on the provider side and the insurance companies."
Forest Park San Antonio has 29 creditors and assets worth between $100 million and $500 million, according to the chapter 11 petition filed Tuesday.
Forest Park's hospital in Frisco, Texas, filed for chapter 11 bankruptcy in September.
More articles on healthcare finance:
Back from the brink of closure: How a California hospital rebounded after 3 years of losses
The best- and worst-performing CFO leadership styles
1 year post closure: How an Ohio town is managing after losing its hospital