Nacogdoches (Texas) Memorial Hospital is considering filing for bankruptcy protection to reorganize its finances, according to KTRE.
Nacogdoches Memorial Hospital CEO Gary Kendrick told KTRE the hospital owes vendors between $10 million and $11 million. He said most of the debt was accumulated under previous management.
"The plan is not to walk away from our vendors, both local and national," Mr. Kendrick said. "The goal is to work out what's best for this hospital, so we can satisfy all those debts and continue to move forward."
Although Nacogdoches Memorial Hospital may file for bankruptcy, Board President Lisa King said the hospital is not going to close.
"There will no lock on our door," Ms. King said. "We will be here tomorrow, and we will be here 10 years down the road continuing to take care of the people of Nacogdoches."
The hospital board will meet with two law firms on June 7 to further discuss the potential bankruptcy filing, according to the report.
More articles on healthcare finance:
2 Arizona hospitals enter bankruptcy
Anthem's new imaging policy likely to hit hospitals' profits
Lee Health scales back hiring, raises as operating margin declines