The Woodlands, Texas-based Victory Healthcare has filed for Chapter 11 bankruptcy protection, while it attempts to sell its medical and surgical centers.
The system manages six for-profit medical and surgical centers in Texas, and the system said it has "many interested buyers for its centers." Last month, Houston-based Nobilis Health agreed to acquire Victory Medical Center in Plano, Texas, and Victory intends to petition the court to accelerate that sale.
Two of Victory's facilities, Victory Medical Center Beaumont and Victory Medical Center Houston-East, were excluded from the bankruptcy filing. Those two hospitals already have buyers in place outside of the court process.
"We had built an extremely high quality, state-of-the-art group of community-centric medical centers and hospitals," said Victory CEO Robert Helms in a statement. "Unfortunately, as out-of-network providers, we came under attack by large insurance carriers. Even though we were able to execute in-network agreements with three large insurers, the extreme slowness and lack of payment from the carriers constrained liquidity significantly."
To address those issues, Victory reduced expenses and provided fewer services at its facilities. However, that wasn't enough. "Unfortunately, now we have no other choice except to sell our facilities with the intent of remunerating secured and unsecured creditors alike," said Mr. Helms.
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