In May, the San Benito Health Care District, d/b/a Hazel Hawkins Memorial Hospital, filed for chapter 9 bankruptcy, citing limited access to working capital, labor expenses, and cash flow and revenue issues.

These issues are not limited to just this debtor. Many public health care organizations are facing similar challenges and may be able to take advantage of chapter 9 provisions, which can help ensure they are providing quality care to their communities and achieving financial stability.

The article below, which originally appeared in the American Bankruptcy Institute Health Care Newsletter, highlights the rare use of chapter 9 and how this could serve as a precedent for other public hospitals in similar situations.

Read the Article

Reprinted with permission from the American Bankruptcy Institute’s Health Care Committee Newsletter, www.abi.org. Copyright ©2023 all rights reserved.