In recent California Bankruptcy news, six urgent care facilities will be affected by a Chapter 11 Bankruptcy. The owner and founder of Neighborhood Urgent Care, Dr. Robert C. Amster, filed for Chapter 11 bankruptcy in Orange County this week. The California bankruptcy filing will affect the following six facilities:
- Cypress Urgent Care in Cypress, California
- Hoag Urgent-Care in Anaheim Hills, California
- Hoag Urgent Care in Huntington Harbor, California
- Hoag Urgent Care in Orange, California
- Hoag Urgent Care in Tustin, California
- Laguna Dana Urgent Care in Dana Point, California
The good news for individuals who rely on these urgent care facilities for medical procedures, is that Chapter 11 bankruptcy allows companies to conduct business as usual, while they attempt to restructure their company debt and finances. Only six of the ten urgent care centers that are owned by Neighborhood Urgent Care facilities will be affected by the Southern California Bankruptcy, and while the Orange, California Hoag Urgent Care center closed last year, the remaining five will stay open for business with no interruption to patient care.
The primary cause of this recent California bankruptcy was quoted as being due to the changing reimbursement rates that are plaguing healthcare groups and causing them to file for bankruptcies. Other hospitals in California have filed for Chapter 11 bankruptcy in the past 12-18 months and include Gardens Regional Hospital and Medical Center in Hawaiian Gardens. While these changes in how insurance companies reimburse medical providers are affecting many medical practices across the state, the bankruptcy laws in the US allow for just this type of debt relief for company’s seeking to remain open while reorganizing their debt load.
According to the bankruptcy filings, the urgent care facilities in the Neighborhood Urgent Care bankruptcy case are carrying somewhere between $1 million and $10 million in debt. As a business owner, there are many things to worry about and if your company is having issues meeting payroll, paying rent, or meeting vendor obligations, you should contact a California bankruptcy attorney to get more information about keeping your business running while you reorganize your liabilities.
Categorized in: Debt