Hospital serving Wichita suburb files for bankruptcy. What does it owe creditors?
A hospital serving one of Wichita’s suburbs has filed for bankruptcy, leaving questions about if and how it will continue to operate as it works toward a profitable model.
Rock Regional Hospital in Derby filed for Chapter 11 bankruptcy Dec. 7, a process that allows the business to operate during reorganization and make plans to pay off its debts. The documents, filed in federal bankruptcy court for the District of Kansas, show the hospital would reach a profitable model in the next 12 to 18 months.
The hospital has between $50 million and $100 million in liabilities, documents show, with the largest unsecured claim being more than $23 million in rent payments for their facility to CBC Derby LLC.
Issues with the landlord aren’t new. Documents show, as of the date of the filings, Rock Regional is facing eviction following litigation with the landlord despite a pending appeal.
The second-largest unsecured claim is more than $8 million to DLC Medical LLC for equipment rentals. Other large unsecured claims include more than $4 million to the Kansas Department of Health and Environment and more than $2 million to the Internal Revenue Service.
The Wichita Eagle left a voicemail at the CEO’s office and has not heard back.
While the hospital is located in Derby, it serves patients in surrounding areas like Mulvane, Wellington, Winfield, Ark City and Rose Hill. The hospital, opened in 2019, cost $40 million to build and employs around 200 people. It is located on 3251 North Rock Road, across from Derby North Middle School and north of Field Station: Dinosaurs.
Derby is about a 20-minute drive south of Wichita and has a population of more than 26,000 people.
