Walker County Hospital Corp., which operates Huntsville (Texas) Memorial Hospital, is preparing to file for bankruptcy, and local hospital district board members are trying to finalize financing to take over the hospital, according to The Huntsville Item.
Significant financial losses and failed attempts to create a network of clinics are among the factors pushing WCHC, a private nonprofit organization, toward bankruptcy.
A new nonprofit formed by the local hospital district is expected to take over operation of Huntsville Memorial Hospital in partnership with Plano, Texas-based Community Hospital Corp., in November, according to the report.
The local hospital district has roughly $13 million in reserves, and the new nonprofit will need between $20 million and $30 million of taxpayer-backed funds in a revolving line of credit to run the hospital until new contracts with insurers are finalized.
Access the full article from The Huntsville Item here.
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