According to an article in the Star-Telegram, as a part of their Chapter 11 bankruptcy Renaissance Healthcare Systems has agreed to the foreclosure of a hospital in Grand Prairie that it had planned to reopen this year.
The article said:
The property consists of a 233,000-square-foot hospital building and a 30,000-square-foot office building on 22 acres of land. Renaissance Healthcare had said it was redeveloping the property into a state-of-the-art facility with 150 private rooms, a cardiac-care unit, 12-bed emergency room, in-patient rehabilitation and a long-term care facility, among other things. It had planned to employ as many as 600 workers.
The redevelopment plans were shuttered because funding ran out when the capital markets collapsed and the credit crisis began to squeeze the nation. Renaissance currently owes banks $38 million and is hoping to survive their Chapter 11 bankruptcy; but was unable to save this hospital from foreclosure. Hospital services are an unseen casualty in the many bankruptcies and foreclosures gripping the business world. When it comes to jobs we are told that healthcare workers are in high demand; but what is unsaid is that many Hospitals are overleveraged and struggling to avoid foreclosure and bankruptcy. Because of the current credit crisis, we can expect to see the number of hospital foreclosures and bankruptcy to rise.