Hospital claims bankruptcy will result in financial strength | The Colpitts Law Firm
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Hospital claims bankruptcy will result in financial strength

During the process of creating a new business in Oklahoma, many decisions must be made. These decisions can ultimately have a major impact on the company's overall financial security. For example, spending too much money building a hospital can leave the hospital struggling to manage its debt once it opens. Representatives from an out-of-state hospital claim that spending too much money building the facility, among other reasons, has ultimately left it financially unstable. As a result, the company is exploring its bankruptcy options.

Green Valley Hospital opened approximately two years ago. In that time, it has seen three different chief executive officers. The current CEO has recently announced that the hospital will seek Chapter 11 bankruptcy protection. Such an action will allow the the hospital to restructure its debt; the facility and its day-to-day operations will not be impacted by the decisions.

Hospital representatives cite several reasons for the hospital's struggles. In addition to the cost of constructing the building, some sources claim that the hospital was mismanaged in its early days. Additionally, it claims that the hospital has been burdened by a fee it must pay as part of the state's plan to expand Medicaid as well as high interest rates on loans.

The CEO says that its decision to seek bankruptcy protection will ultimately strengthen the hospital financially, allowing for success in the long term. Many companies in Oklahoma also find themselves facing similar financial stresses. Ultimately, seeking Chapter 11 protection can allow a company to manage its debt while having little to no impact on its overall operations.

Source:, "Green Valley Hospital says Chapter 11 is part of a long-term success plan", Stephanie Innes, April 2, 2017

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