According to Dallas Business Journal, Forest Park hospital in Frisco, Texas has filed for Chapter 11 bankruptcy protection. The lawyers representing the hospital gave a bankruptcy notice to Collin County last Tuesday, September 22. Based on the reports, the hospital owes a total of $14 million to its loaners.

Todd Furniss, the chairman of The Management Company at Forest Park Medical Center, said that filing for bankruptcy protection was necessary because of financing challenges and reductions in the out-of-network payments from insurance companies. Mr. Furniss said, “It’s a sad day, but the board felt this is the best action to move forward… They want to do the best they can for the physicians to continue serving patients.”

Filing for Chapter 11 bankruptcy protection allows companies to regroup their finances in order to become profitable again. Our bankruptcy lawyers at Gagnon, Peacock & Vereeke, P.C. in Dallas offer insightful legal assistance for your bankruptcy needs. Call our office at (214) 824-1414.