Boutique hospital The Hospital at Westlake voluntarily filed for Chapter 11 bankruptcy Sept. 8, a step that could keep the hospital in operation.

CEO Dr. Mark Shen said in a news release that like other “industry peers,” the hospital has faced a number of post-pandemic challenges, leading to the filing.

Two-minute impact

According to the release, the filing is part of the hospital’s ongoing efforts to manage debt that existed before COVID-19 but was exacerbated by the pandemic and post-pandemic industry pressures, such as workforce shortages and the increase in labor, supplies and drug costs.

The hospital initially “reduced its corporate overhead” and “consolidated organizational processes” to try and address these challenges, according to the release.

“The hospital’s decision to commence these proceedings is a critical and urgent step to address these unsustainable industry-wide challenges, which have been detrimental to its operations,” the release said.

Chapter 11 bankruptcies allow debtors and creditors to formally reorganize debts while the business remains operational. While there is no set timeline for when this process will be completed, all operations are expected to continue as normal with scheduled appointments, operations and surgeries to remain unaffected, per the release.

What they’re saying

"Like many of our industry peers, we've battled immense challenges since the onset of the pandemic, which have only magnified the struggles businesses across every industry grapple with, including our own,” Shen said. “Facing the stark reality of our financial standing and the unrelenting pressures impacting our industry, we're taking every measure possible to secure the future of our hospital."