Officials at North Texas Medical Center in Gainesville are going to great lengths to keep the hospital open.
The 60-bed hospital, which is owned by the Gainesville Hospital District, has faced financial troubles in recent years. With the hope of regaining its financial footing, North Texas Medical Center's board approved a partnership agreement with King of Prussia, Pa.-based Universal Health Services in December.
Under the agreement, Texoma Medical Center in Denison, Texas, which is owned by UHS, will lease all five buildings on North Texas Medical Center's campus and take over operations of the hospital.
While negotiations with UHS continue, North Texas Medical Center filed for Chapter 9 bankruptcy — a bankruptcy proceeding that offers distressed municipalities protection from creditors while a repayment plan is negotiated.
In its bankruptcy petition, which was filed Jan. 17, North Texas Medical Center said it has a minimum of 200 creditors. The hospital said it has at least $10 million in assets and at least $10 million in liabilities.
On Jan. 24, the bankruptcy court approved a debtor-in-possession loan that will allow UHS to provide financial support to North Texas Medical Center during the course of the bankruptcy case.
"Allowing the debtor to enter into the DIP loan with UHS is in the best interest of the debtor, the creditors, and the parties-in-interest," wrote bankruptcy judge Brenda T. Rhoades in her order approving the loan. "The DIP loan is necessary for the debtor to have access to sufficient funds to conduct its medical care operations in the ordinary course during the case."
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