Heights Hospital files for bankruptcy | Health

The company that owns The heights hospital filed for Chapter 11 bankruptcy on June 1 – nearly five months after its doctors, nurses, support staff and even patients were kicked out of the building over alleged financial delinquency.

According to documents filed with the U.S. Bankruptcy Court for the Southern District of Texas, 1917 Heights Hospital, LLC, estimates that it has between $ 100 million and $ 500 million in assets and between $ 10 million and $ 50 million in liabilities. Its list of creditors, according to court filings, includes utility and telecommunications companies as well as the Harris County Appraisal District (HCAD), the Texas Attorney General’s Office and the Internal Revenue Service.

Another creditor is Nevada-based Arbitra Capital Partners, LLC, which filed a lawsuit in early January against directors of The Heights Hospital, Dharmesh Patel and James Robert Day, alleging they owe around $ 3.5 million. in interest on a $ 28 million promissory note they signed for the property at 1917 Ashland St. in January 2019, according to Harris County court documents.

County court records also show that a group of Houston investors sued the hospital and some of its related entities and individuals in February, claiming more than $ 2 million in damages and alleging their investment in the hospital had been fraudulently hijacked.

According to a June 4 court file filed by the lawyer representing the hospital in the latter case, “the hospital was forced to close due to the slowdown in business precipitated by the COVID-19 pandemic”.

That attorney, Ky Jurgensen of Houston law firm Hendershot Cowart PC, declined to comment in an email Tuesday. The hospital’s bankruptcy attorney according to court documents, Steven Shurn of Hughes Watters Askanase, did not respond to a voicemail and email Tuesday requesting comment, nor did the hospital bankruptcy lawyer Houston-based attorney listed for Arbitra, H. Miles Cohn of Crain, Caton & James.

The 160,849-square-foot hospital building, which was constructed in 1978 and renovated in 2020, is valued at more than $ 15.9 million, according to the HCAD.

At least one other health care provider continues to use the building. Cobalt Rehabilitation Houston Heights is located on the fourth floor.

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