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Austin hospital owners file bankruptcy papers

bank vaultThe owners of Forest Park Medical Center Austin, a new hospital in Williamson County that has been vacant since it was finished in 2015, have filed for Chapter 11 bankruptcy to reorganize debt and stay in business.

San Antonio attorney Raymond Battaglia filed the voluntary petition Jan. 5 on behalf of FPMC Austin Realty Partners, a company with a Dallas address on court records.

The $135 million hospital on the northern fringe of Austin at 1201 W. Louis Henna Blvd. was promoted as a state-of-the-art surgical facility with accommodations that would rival the likes of a Ritz-Carlton hotel. It was designed by Page architects, a leading design firm in Austin, and built by Adolfson & Peterson Construction.

The Forest Park Medical Center business model, originated in Dallas, was somewhat unconventional with a real estate company developing a hospital and physician-investors recruited as the operators. Each hospital had a different ownership structure.

The Austin ownership group’s bankruptcy petition was filed in the Western District of Texas and indicates about 10 unsecured debtors collectively are owed a little more than $500,000. Online court records indicate, however, that Frost Bank is a secured creditor in the case but the amount owed was not disclosed.

It’s unknown if the Austin facility is for sale.

During the past several months Forest Park facilities in Dallas and San Antonio closed, likely the result of various pressures, while management officials said there had been negative impacts as a result of Obamacare, which introduced measures to discourage patients from using physician-owned and out-of-network facilities. The Fort Worth facility filed for bankruptcy over the weekend, the Dallas Business Journal reports, and owes more than $13 million, including $11.1 million in rent.

Click to read entire article: Austin hospital owners file bankruptcy papers (Austin Business Journal, 01-11-16)

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