The problem with privatized healthcare is that it is susceptible to financial collapse. As the US economy continues to dip, healthcare giant Landmark has filed for bankruptcy, adding to the list of failing healthcare businesses.
Landmark runs a total of six facilities across the Midwest and South US. They operate out of Florida, Missouri, and Georgia. At this time it is unclear if their Chapter 11 bankruptcy will force them to close any of their locations.
The bankruptcy filing reveals that they currently have debt between $50 million and $100 million. Their largest secured creditor is a real estate investment trust, Ventas, to whom they owe $13 million. These debts will have to be cleared in the coming months for healthcare giant Landmark to pull itself from bankruptcy.
Among the unsecured creditors are the Center for Medicare & Medicaid Services and J&R Fuller LLC. According to the bankruptcy filing made by healthcare company Landmark, no funds would be available to pay unsecured creditors after administration funds were allocated.
One Of Many Healthcare Providers to File For Bankruptcy
The Landmark filing is not the first of its kind in the US. Earlier this year, in January, Prospect Medical Holdings also filed for bankruptcy. This huge corporation ran 16 hospitals and 150 clinics across the US.
Last year, Steward Health Care put all of its 31 hospitals up for sale after filing for Chapter 11 bankruptcy. This healthcare giant affected around 2.2 million patients with its failure. The Steward Health Care company reported an estimated $9 billion in debt, making this latest bankruptcy filing look like peanuts.
This healthcare giant was forced into bankruptcy by its private owners. They used it to take hundreds of millions of dollars in payouts before it eventually collapsed. This for-profit model has run vital life-saving facilities into the ground for the benefit of the few.
The enormous collapse of this vital service for millions of patients has brought under scrutiny private equity-owned hospitals.
