A physician clinic based in Conroe, Texas, that was recently purchased by Nashville, Tenn.-based Hospital Corporation of America filed for Chapter 11 bankruptcy and argued that HCA did not follow through on its financial commitments, according to an affidavit and a Courier of Montgomery County report.
In February, HCA bought most of Sadler Clinic's assets for $21.3 million. Through an affiliation agreement, HCA agreed to pay $8.9 million and advanced roughly $3.4 million of that total to the clinic, according to the report. However, the affidavit said HCA "refused to pay the rest of the money owed through the agreement" and would not help to restructure the clinic, which caused problems with Sadler and its debtors.
In an email to the newspaper, HCA officials said they have "lived up to our agreement with the clinic and are disappointed they have chosen to make these assertions," according to the report.
Chapter 11 bankruptcy is usually used by organizations as a means to reorganize, but Sadler Clinic plans to liquidate all of its assets. A federal bankruptcy court will set "first-day" relief hearing dates next week, according to the report.
In February, HCA bought most of Sadler Clinic's assets for $21.3 million. Through an affiliation agreement, HCA agreed to pay $8.9 million and advanced roughly $3.4 million of that total to the clinic, according to the report. However, the affidavit said HCA "refused to pay the rest of the money owed through the agreement" and would not help to restructure the clinic, which caused problems with Sadler and its debtors.
In an email to the newspaper, HCA officials said they have "lived up to our agreement with the clinic and are disappointed they have chosen to make these assertions," according to the report.
Chapter 11 bankruptcy is usually used by organizations as a means to reorganize, but Sadler Clinic plans to liquidate all of its assets. A federal bankruptcy court will set "first-day" relief hearing dates next week, according to the report.
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