An Indiana hospital owned in part by Wichita-based CHA has filed for Chapter 11 bankruptcy reorganization.
Kentuckiana Medical Center in Clarksville, Ind., said the filing earlier this week was intended to prevent any interruption in hospital operations.
The hospital opened a little more than a year ago. It is a partnership between CHA and a group of 33 investors from the Clarksville area.
CHA, formerly known as Cardiovascular Hospitals of America, is led by Wichita cardiovascular surgeon Badr Idbeis.
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Malik Idbeis, vice president for communications at CHA, said one of the banks with which the hospital was dealing froze its account, prohibiting it from servicing debt and purchasing supplies.
The bankruptcy filing allowed operations to continue and employees to be paid, the hospital said in a release.
It said the financial problems were compounded by an abnormally long certification process that caused delays in billing.
The hospital is a 34-bed acute-care hospital. It is CHA's only remaining U.S. hospital, Malik Idbeis said. Badr Idbeis also is an owner in Kansas Medical Center in Andover, but it is not a CHA hospital.
CHA still is planning a project in the Caribbean, Malik Idbeis said.
CHA also had ownership in hospitals in Louisiana and in Hawaii. The Louisiana hospital, which never opened, was sold to its creditors earlier this year; a bankruptcy reorganization plan approved earlier this year ended CHA's presence in Hawaii Medical Center.