Humble Surgical Hospital files bankruptcy, cites $41 million judgment

By Caroline Salls

Pittsburgh, Feb. 24 – Humble Surgical Hospital, LLC filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the Southern District of Texas.

Humble said its bankruptcy filing resulted from an attempted garnishment action by Aetna related to a recent adverse district court ruling and entry of final judgment against the hospital of roughly $41 million, plus interest.

The hospital said the debtors “immediately appealed this judgment to the Fifth Circuit Court of Appeals and expect that the ruling will be reversed.”

“Due to Aetna’s impending garnishment, the debtors were faced with no other viable alternative, other than filing these bankruptcy cases,” the company said in a joint administration motion.

In connection with the bankruptcy filing, the company requested court approval to use the cash collateral of secured lender Regions Bank to allow it to fund its operations while in Chapter 11 and preserve its ability to dispose of assets as ongoing concerns.

The cash collateral would initially be used in accordance with a 14-day budget, subject to entry of a final order.

According to court documents, Humble has $10 million to $50 million in assets and $50 million to $100 million in debt.

The hospital is represented by Hoover Slovacek LLP.

The Humble, Texas-based hospital provides specialized surgical and ancillary services. The Chapter 11 case number is 17-31078.

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