A health care company in another state recently decided to make a major move to address its monetary issues. It decided to file for Chapter 11 bankruptcy protection. Companies in Massachusetts that are having a hard time staying afloat financially can do so likewise to regain their financial footing.
The company that filed for bankruptcy in the out-of-state case owns multiple physician practices as well as three hospitals. According to officials, the organization filed for bankruptcy partly because of the costs linked to its electronic health record, or EHR, system. Apparently, revenue began to decline at the same time that hospital spending went up due to the purchase of the EHR technology.
Company officials said they had a hard time paying their EHR bills. Other hospitals also face this issue due to reimbursement-related problems and EHR technology’s high costs. The problem is plaguing both rural and urban hospitals, but rural hospitals are especially being affected due to a lack of both technical and financial resources. The out-of-state company’s officials said they would continue to operate its three hospitals until they are able to sell them.
Sometimes, economic, industry or market changes cause companies both large and small to end up with more liabilities than assets. However, filing for Chapter 11 bankruptcy protection may give them the break they desperately desire from the clutches of overwhelming debt. A bankruptcy attorney can help struggling business owners to easily complete their Chapter 11 filings with the goal of getting the financial second chances they need in Massachusetts.