HMC/CAH Consolidated, Inc, the parent company of the Prague Community Hospital filed for Chapter 11 in bankruptcy court earlier this month but expects to continue with a plan to build a new facility for Prague.


HMC/CAH Consolidated, Inc, the parent company of the Prague Community Hospital filed for Chapter 11 in bankruptcy court earlier this month but expects to continue with a plan to build a new facility for Prague.

The company, who owns 12 rural hospitals, is based in Kansas City, Mo. and plans to reorganize the company’s finances and come out better suited to maintain their business finances, Administrative Assistant Sharon Lassiter said.

The Prague Community Hospital will not shut-down and many believe the facility will be a stronger and healthier business because of the reorganization.

Lassiter said there were 12 rural hospitals connected with the company but according to a bankruptcy court clerk in Kansas City, where the Chapter 11 was filed, there are 13 entities involved with the bankruptcy.

Officials from HMC/CAH had a meeting with Prague City Manager Jim Greff last week to explain the reorganization.
“They did file Chpater 11 and they feel like it was their best answer to the situation they are in,” Greff said.

The restructuring is also a result of the economic downtown but more specifically by the failure of the company’s lender, HHI, to fund hospital projects, which were scheduled to begin construction this year, Lassiter explained.

The company had been working with a lender company that was not providing the company with enough funding to pay their bills. Therefore, the company filed Chapter 11 to get out of the contract with the company to free up assets in order to meet their financial obligations, Greff said.

“Everything they said sounded real good and they have no intention of closing any of the hospitals ... involved in this  and they want to see things move forward,” he said.

The company hopes to have their finances in order within the next year to begin building a new facility that is planned in Prague.

HMC/CAH will not waver from its ultimate goal to rebuild the rural hospital infrastructure of its hospitals, Lassiter said in a press release.