A small hospital outside of Houston, Texas, declared bankruptcy last week and could eventually be sold after a federal court determined that it owed an insurer more than $50 million due to excessive billing.
The Houston Chronicle reports that Humble Surgical Hospital sought Chapter 11 bankruptcy protection three weeks after a judge finalized a $51.4 million award to Aetna Life Insurance Co.
Aetna sued Humble in 2012 amid allegations that that the five-bed specialty hospital offered discounts to lure out-of-network Aetna patients, then charged the insurer up to 10 times the average market rate for procedures.
Humble’s bankruptcy filing reportedly said that the company’s estimated liabilities of $50 million to $100 million exceeded assets of $10 million to $50 million.
The hospital will remain open as the bankruptcy filing proceeds, but the company’s attorney conceded that its owners could be forced to sell in the future.
“I can’t see them generating that kind of revenue to satisfy the judgment,” Edward Rothberg told the Chronicle.
Filed Under: Industry regulations