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Lindley Estes is a business writer for The Free Lance-Star and Fredericksburg.com. This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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Local healthcare company to file for bankruptcy protection

A Fredericksburg-area healthcare company plans to file for bankruptcy protection.

Dantra Healthcare Inc., which both operates medical practices and provides administrative services for physicians, will file for Chapter 11 bankruptcy early this week in order to restructure financially and develop a repayment plan for its creditors, company president and CEO Dana Tate announced Monday morning.

The filing will include Dantra and its affiliated companies, including Southpointe OBGYN LLC (which recently sold its operations to an affiliate of HCA), King George Medical Center Ltd. and S.A. Medical of Virginia Inc.

Dantra will “refocus efforts on profitable services and wind down unprofitable operations,” the company said in the news release.

Dantra expects the bankruptcy process to take about four months. Company operations will continue as normal during the process, with existing clients getting the same service and new customers being targeted.

The company said it has struggled to reach financial goals due to lower-than-expected patient volumes and “stagnant” insurance reimbursements, coupled with increasing overhead and provider “oversaturation” in the local market.

“During these tumultuous times in our industry of healthcare, it is necessary for us to restructure to ensure the long-term success of our companies,” Tate said in the announcement. “We will not be idle during this time as we continue normal business operations and will come through this process as a stronger organization.”

Permalink: http://news.fredericksburg.com/businessbrowser/2013/10/07/local-healthcare-company-to-file-for-bankruptcy-protection/