White Rock Medical Center owner files for bankruptcy

The owner and operator of White Rock Medical Center, Pipeline Health System, has filed for Chapter 11 bankruptcy, but operations at the East Dallas hospital are continuing as normal.

In 2018, the California-based system acquired what was then called Baylor Scott & White Medical Center – White Rock, which was a joint venture between Baylor Scott & White Health and Tenet Healthcare. Prior to this, it was called Doctor’s Hospital in White Rock Lake. When acquired, the hospital was called City Hospital at White Rock, but was renamed earlier this year to become White Rock Medical Center.

The 187-bed hospital is unique in North Texas because it is not part of a local health system. Almost all hospitals in North Texas are part of the Texas Health, Medical City, Baylor Scott & White, or Methodist Health systems.

In 2021, White Rock Medical Center CEO Matt Roberts sat with D CEO Healthcare and spoke about his hopes for his new position. This was his first position with Pipeline Health and saw the hospital’s small size as an advantage when it came to recruiting and retaining talent, and felt that the hospital’s location away from the most of the other hospitals in town was a business advantage.

“City Hospital is going to take many steps over the next few years to improve in many ways and provide more for the people of east Dallas, and I’m just thrilled to be here and be a part of it, Roberts told D CEO Healthcare last year.

Pipeline Health has seven hospitals in three states. In addition to White Rock, the system has two hospitals in Chicago and four in the Los Angeles area. A statement said Pipeline was looking to sell its two Chicago hospitals, which were previously acquired from Farmers Branch-based Tenet Healthcare.

The “process will provide Pipeline with the flexibility and resources to continue operations and care for patients while evaluating and implementing targeted strategies to improve efficiency and chart a long-term sustainable path,” a statement on bankruptcy.

The press release notes,skyrocketing labor and supply costs, diminished ability to generate revenue, and delays in payment from various insurance plans for critical patient care services already provided” as reasons of the deposit. Pipeline CEO Andrei Soran said the plan was to keep all hospitals open during the restructuring process.

In 2019, Pipeline in partnership with Lewisville-based Adeptus Health to purchase 22 stand-alone emergency rooms in North Texas. Adeptus was the nation’s largest standalone emergency room operator and was bought by a New York hedge fund in 2017 after filing for bankruptcy.

The buyout hedge fund had to pay $212.7 million in outstanding loans after a class action was filed against Adeptus alleging that the company made false and/or misleading statements, failing to disclose its internal control over financial reporting and the general state of its business operations.

“As we move forward, our patients, team members, providers and communities can expect continuous and transparent updates on our progress,” Soran said in the statement. “It is important to know that our patients do not need to reschedule their appointments as a result of today’s announcement.”


Will is the editor of CEO magazine and editor of D CEO Healthcare. He wrote about health care…