The Izard County Medical Center in Calico Rock, the only hospital in Izard County, and its parent company, Americore Health, have filed for bankruptcy. According to the Arkansas Democrat-Gazette, an attorney for Americore Health and its affiliates filed in a Kentucky bankruptcy court Tuesday.
It’s not clear what the filings mean for the future of the hospital, as officials from the medical center and from the parent company failed to return calls to the paper seeking comment. The petition was filed under Chapter 11 of U.S. bankruptcy code, meaning they can ask the court to reorganize debts and continue operation.
The Izard County Medical Center was established in 1952 and was acquired by Americore in 2017. The hospital has 25 beds and an emergency room open 24/7, and it is a critical access medical center. Critical Access Hospital is a designation given to eligible rural hospitals by the Centers for Medicare and Medicaid Services. The designation is designed to reduce the financial vulnerability of rural hospitals and improve access to healthcare by keeping essential services in rural communities.
According to documents filed Tuesday, the hospital’s assets and liabilities each totaled less than $50,000.
The paper also reports a lawsuit was filed in Izard County Circuit Court last month alleging the hospital and its operator owe more than $307,000 in back rent to a landlord, and they have not paid their 2018 property taxes,which total nearly $40,000.
Hospitals associated with Americore in Kentucky, Pennsylvania and St. Louis also filed bankruptcy papers Tuesday.
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