While a company could be experiencing a consistent history of successes and promising opportunities, even the slightest misstep at the wrong moment can quickly end everything. For many Virginia companies, the concern of having to file for bankruptcy is always a thought lurking in the shadows, but with proper management, many companies can overcome financial difficulties without having to make such a drastic and long-lasting decision.
Recently, two Arizona hospitals announced that they were filing for bankruptcy protection. However, soon after, both hospitals were forced to shut down operations and close their doors. The hospitals cited financial problems as their reason for having to suspend all operations. Management released a public statement informing people that there was never a compromise to the level of patient care and satisfaction, but that ongoing and worsening financial problems made it impossible to stay in business.
At the time that the hospitals filed for bankruptcy, court records indicated that neither was able to pay their rent. Both were occupying buildings on a terminated lease and swimming in a shocking $13.1 million worth of unpaid debts. Records also showed that both hospitals had been penalized by Medicare.
If companies are worried about their financial health and questioning if they should file for bankruptcy, they may wish to enlist the help of an attorney. A legal professional may be able to provide guidance in analyzing and comparing different options before the decision to file for bankruptcy is made.
Source: azcentral, "Bankruptcy forces abrupt closure of Gilbert Hospital, Florence Hospital at Anthem," Lily Altavena, Jun 15, 2018