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Green Valley Hospital laid off about 60 employees on Tuesday, less than a week after emerging from chapter 11 protection. The hospital also has been renamed Santa Cruz Valley Regional Hospital, the Green Valley (Ariz.) News reported. Notices handed out to employees on Tuesday said the hospital “has experienced significant financial difficulties” over the past several months, and efforts over the past year “have not resulted in long-term sustainability.” Laid off workers were given one week's severance and were told they could apply if the positions are reinstated. Green Valley Hospital opened in May 2015 with 49-beds, a restaurant, coffee bar and gift shop. But from the beginning the hospital, which never had an operator, struggled to fill beds and recruit and retain specialists, although residents clearly enjoyed having a hospital in the community. The hospital filed for bankruptcy in April 2017 to get out from under crushing debt and to secure long-term financial stability. The bankruptcy case was finalized on July 25. Read more. 

For more on hospital and health care insolvencies, be sure to pick up a copy of the ABI Health Care Insolvency Manual, Third Edition from the ABI Bookstore. 

The parent company of a former Wichita Falls, Texas, standalone emergency room has filed for chapter 11 protection, possibly affected two lawsuits in local district courts, the Wichita Falls Times-Record-News reported. Neighbors Global Holdings, LLC — parent company of NEC Wichita Falls Emergency Center, L.P. — gave notice that a petition under chapter 11 of the bankruptcy code was filed on July 12. A legacy corporation lists their creditors with the 50 largest unsecured claims as totaling over $9 million in claims with the majority of them being based on trade debt. In Wichita County, NEC was facing two lawsuits — one for malpractice and the other for breach of contract. The malpractice suit stems from allegations that a girl's foot became severely infected due to improper care received at the local NEC site. In that case, attorneys representing NEC filed a motion on July 23 to abate the proceedings, essentially asking the court to temporarily suspend the lawsuit until the bankruptcy petition is completed. The order was granted by 30th District Judge Robert Brotherton on July 24.

Houston-based Neighbors Legacy Holdings Inc. and 48 other related entities filed for chapter 11 bankruptcy protection late last week, the Houston Business Journal reported. Additionally, the company has already lined up a buyer for its Houston-area emergency centers, according to court documents. Neighbors noted that it filed for chapter 11 to “expedite the sale of its Houston and non-Houston operations.” The company operates as Neighbors Health, which includes Neighbors Physician Group, Neighbors Emergency Center and Neighbors Practice Management. The list of debtors includes individual locations of NEC and Neighbors Physicians Group as well as some other entities. Most of the entities listed assets between $1 million and $10 million, though 13 listed smaller ranges and two listed assets between $10 million and $50 million. Similarly, most of the entities listed debts between $1 million and $10 million, but 12 listed smaller ranges and only one listed debts between $10 million and $50 million.

ActiveCare Inc., a publicly traded company that helps people manage their diabetes, filed for bankruptcy with a restructuring plan that would hand ownership of the company to key supplier and largest unsecured creditor BioTelemetry Inc., WSJ Pro Bankruptcy reported. The chapter 11 filing on Sunday came after the Orem, Utah-based company defaulted on its debt and saw a potential deal with Cleveland Clinicunravel, according to records in U.S. Bankruptcy Court in Wilmington, Del. ActiveCare has a center at its headquarters whose staffers help patients manage their glucose levels by providing real-time blood test results and around-the-clock support, Mark Rosenblum, the company’s chief executive said in a bankruptcy filing. But the company has lost money for years, and has been unable to pay commissioned sales brokers, lenders or key suppliers, including publicly traded BioTelemetry. Efforts to raise additional capital, including after an extensive road show last year, have fallen short.