The decision to file bankruptcy is often a difficult one. Recently, Houston medical provider Sadler Clinic, which was founded in 1958, is discussing possible plans to file bankruptcy. The clinic has recently been losing money and has laid off as many as 70 doctors and 400 support staff employees. According to the company's president, the clinic has already moved out of its Woodlands location.
While bankruptcy isn't always the first choice for businesses, it may be considered a viable option. In this case, the Sadler Clinic president has said that although nothing has yet been filed, bankruptcy is a potential option.
The current goal is to work to reduce the company's footprint to a more manageable size and consolidate services. They hope to continue to provide health care for their patients, which they may be able to accomplish through a Chapter 11 reorganization petition. However, if their financial obligations are such that reorganization is not feasible, Chapter 7 liquidation may be the best option.
Sadler Clinic in Houston is facing many of the same uncertainties that other companies face. The potential changes in health care insurance may be partially to blame for the current financial difficulties. Additionally, two years ago a large number of doctors left the clinic due to contract issues. With many locations in the area, the company is concerned about their long-term lease agreements.
For Houston companies with financial woes such as Sadler, one option up for consideration is bankruptcy. Filing bankruptcy can sometimes provide support and help to companies that are having long-term financial problems. In the case of Sadler Clinic, they are discussing their options with their legal team to determine the best course of action to take.
Source: Your Conroe News, "Bankruptcy 'option' for Sadler Clinic," Nancy Flake, May 22, 2012