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Hospital System for Poor Files Bankruptcy, Blames Labor Cost (1)

Oct. 3, 2022, 10:41 PM

Pipeline Health System LLC, an operator of hospitals and clinics that serve people on government insurance programs, filed for bankruptcy Sunday evening with a plan to auction itself in pieces or hand control to lenders.

The company has struggled since buying three hospitals from Tenet Healthcare in the Chicago area in 2019, according to Russell A. Perry of Ankura Consulting Group, which was hired last year to help turn around Pipeline. The Illinois operations lost $69.7 million in the 12 months ending in August, Perry said in a federal court filing in Houston on Monday.

The company is ...