A West Lake Hills, Texas-based physician-owned hospital, The Hospital at Westlake, has filed for Chapter 11 bankruptcy protection.
The filing is an effort to manage debt that existed before the COVID-19 pandemic but has since been exacerbated, the hospital said in a Sept. 8 news release. The hospital will continue operations during the bankruptcy proceedings.
The hospital has been burdened by inflation, rising costs of labor, supplies and drugs and labor shortages.
"At the heart of our hospital's restructuring is our unwavering commitment to upholding the highest standards of excellence in patient care," Mark Shen, MD, the hospital's CEO, said in the release. "Like many of our industry peers, we've battled immense challenges since the onset of the pandemic, which have only magnified the struggles businesses across every industry grapple with, including our own. Facing the stark reality of our financial standing and the unrelenting pressures impacting our industry, we're taking every measure possible to secure the future of our hospital."