Changes Coming to North Texas-based Victory Healthcare

Victor Parent Company, LLC has voluntarily filed under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas in Fort Worth. The company manages six for-profit Victory Healthcare medical and surgical centers throughout the state.

Plano Medical Center to Find New Ownership

Prior to filing for Chapter 11 bankruptcy, Nobilis was moving forward with plans to purchase the Victory Medical Center in Plano, Texas. As part of its motion to file for Chapter 11 bankruptcy, the company has also filed a motion to expedite the sale of this facility. Nobilis also recently purchased Victory Medical Center Houston in the Texas Medical Center.

The future ownership of the other centers remains uncertain at this time. Those centers that are included in the filing are:

• Victory Healthcare facility in Hurst (“Mid-Cities”)
• Victory Healthcare facility in McKinney (“Craig Ranch”)
• Victory Healthcare facility in Plano
• Victory Healthcare facility in San Antonio (“Landmark”)

The Victory Medical Center Beaumont and Victory Medical Center Houston-East are both excluded from the filing, as both have buyers already in place. Many companies have also already expressed an interest in the facilities that have been included in the filing.

Victory Struggles with Keeping Finances Afloat

While the Victory medical centers and hospitals were experiencing success in terms providing quality service to patients, the company was struggling to make its financial ends meet. According to Robert N. Helms, Jr., who is the Chairman, CEO and Manager of Victory, the fact that the company’s facilities served as out-of-network providers was at the root of their financial problems. Due to their status as out-of-network providers, some insurance carriers were very slow at processing claims and failed to make payments in a timely manner. As a result, the company didn’t have the liquidity that it needed to stay afloat.

In response to their financial concerns, the company had taken steps to reduce expenses. This included changing their facilities in order to provide fewer services while also keeping their emergency rooms open. Faced with an increasingly difficult financial situation, the company was left with no other choice but to sell its facilities in order to repay creditors.

By voluntarily filing for Chapter 11 bankruptcy, Victory will be able to continue with its usual operations without interruption as it completes the sales of its facilities. This is largely due to the fact that an automatic stay went into effect as soon as the company filed the petition. This will allow the company to use its existing funds to support its regular operations through the process. Currently, Victory employs approximately 160 employees at the medical centers affected by the bankruptcy filing and at the corporate office.

Founded in 2005, the Victory Parent Company, LLC is headquartered in The Woodlands, Texas. While it is unfortunate that the company ran into financial trouble, the company is one of many medical and healthcare facilities available throughout North Texas.

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