😷New Chapter 11 Bankruptcy Filing - White Rock Medical Center, LLC😷

Hospital operator perennially plagued by seller seeks a chapter 11 cure

On January 20, 2026, Texas-based White Rock Medical Center, LLC (“White Rock”) filed a chapter 11 bankruptcy case in the Southern District of Texas (Judge Perez). The next day, its affiliate Heights Healthcare of Texas, LLC (“HHT”) and five others joined in (collectively, together with White Rock and HHT, the “debtors”). The debtors operate two hospitals, the eponymous, community safety net White Rock Medical Center (“WRMC”) in Dallas and the less virtuous Heights Hospital (“HH”) in Houston.

For those not in the know, safety net hospitals don’t turn away patients based on ability to pay, and unsurprisingly, ~80% of WRMC’s patients are uninsured, self-payers, or receive insurance through government programs (e.g., Medicare, Medicaid), none of which are known for prompt, full remittances. Ergo, WRMC operates on razor thin margins and leans on public funding.

Operations, however, are not the source of the debtors’ problems.