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Insurers ‘crushing the independents’


King Arthur Faces a Giant,” by Walter Crane.

The Dallas Business Journal reports that Forest Park Medical Center’s San Antonio hospital has filed for protection under Chapter 11 of the U.S. Bankruptcy Act.

The hospital is part of the Dallas-based Forest Park Medical Center network of physician-owned facilities. The announcement was not a particular surprise.  Todd Furniss, chairman of The Management Company at Forest Park Medical Center, blames the bankruptcy filing on insurers’ collective refusal to contract with out-of-network providers.

Mr. Furniss told the paper that claims insurers called patients to instruct them to cancel procedures scheduled  for  Forest Park. “We had a 90 percent cancellation rate on the scheduled procedures for November, December and January at our hospital in San Antonio,” Mr. Furniss told the publication. “The insurance companies are becoming unwitting conspirators to crush the independents, and we’re seeing massive market consolidation both on the provider side and the insurance companies.”


Out-of-network issues hit Texas hospital hard



Downtown Frisco street scene.

In a continuing display of the financial pressures faced by small hospitals, especially those facing out-of-network payment problems, Forest Park Medical Center, in Frisco, Texas, has filed for bankruptcy protection.

Todd Furniss, chairman of The Management Company at Forest Park Medical Center, told the Dallas Business Journal  that the physician-controlled board at the Frisco facility  cited financing challenges, including reduced out-of-network payments from insurance companies.

The pressures for consolidation mount, even for institutions in affluent places like Frisco, a suburb of Dallas.







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