On Sep. 22, 2015, Forest Park Medical Center filed Chapter 11 bankruptcy in federal court. The medical center opened in July 2012, and is located along the Dallas North Tollway in Frisco Square. It is a part of the Dallas-based Forest Park Medical Center network of facilities, which are owned by physicians.

According to several media reports, including the Dallas Morning News, the medical center owes over $14 million to creditors.

Court records show that the hospital utilized an out-of-network model, which was designed to rely on higher reimbursements for its operations. However, that model proved unsuccessful and failed to generate sufficient revenue to meet its obligations and sustain business.

To remedy the issue, the center began contracting with insurance providers for in-network procedures. Unfortunately, the reduced rates were not enough to increase the center's revenue and reimburse creditors.

The document states that without more patients, the hospital is unable to generate enough revenue to manage its debt.

The hospital's staff consists of nearly 160 employees, the Dallas Morning News reported.

Luxury Facility Wasn't Lucrative

The hospital is described as a luxury medical care facility, with inviting features, such as a water fall in the lobby, meals that are cooked to order by an on-site chef, calming scents in the HVAC system, green views from each room, low lighting and calming colors to encourage relaxation. But all of this extra comes with a price, which unfortunately was unsustainable.

As the facility is minimally staffed at present, it can handle up to 200 outpatients per month, but when fully staffed it can handle 1,000 outpatients per month.

Would a Chapter 11 bankruptcy help your business?

If your business is struggling to stay afloat, it may be in your best interests to consider filing for Chapter 11 bankruptcy protection like Forest Park Medical Center in Texas. To learn more about the advantages of filing for bankruptcy, contact a bankruptcy attorney from our directory!