Often, when people hear of organizations filing for bankruptcy, they imagine retailers, restaurants or other similar businesses. However, other types of organizations can also benefit from filing Chapter 11 bankruptcy to help manage the debts that they face. A number of healthcare organizations have recently made the decision to file over the course of this year.
There can be many reasons a hospital or other healthcare organization may choose to file for bankruptcy, such as declining patient numbers or because of the changing role of health economics. Since Jan. 1, 2017, at least 13 hospitals have filed for bankruptcy. Louisiana Heart Hospital is among those that filed, as well as three hospitals in the neighboring state of Texas.
With Chapter 11, organizations are given the opportunity to restructure their finances in order to repay their debts. Though Louisiana Heart Hospital decided to permanently close its doors after filing for bankruptcy, not all organizations choose to do so. By taking advantage of the benefits of Chapter 11, organizations that wish to remain open may do so and continue providing services to the public throughout the completion of the bankruptcy.
Whatever the type of organization or business, owners who find themselves with significant debt may consider filing for Chapter 11 bankruptcy. An experienced Louisiana bankruptcy attorney could assess the financial situations of clients to help determine whether bankruptcy is the best solution. If it is deemed the most appropriate option, the attorney could assist a client in filing as well as provide advice and support throughout the following proceedings.
Source: beckershospitalreview.com, “13 healthcare bankruptcies so far in 2017“, Ayla Ellison, May 20, 2017