Astria Health, a Washington-based health system, filed for Chapter 11 bankruptcy protection earlier this month, as reported in Becker's Hospital Review. In its press release, the health system said it is facing a significant shortfall in cash flow due to issues with the company it contracted with to manage its billing in August 2018. Astria said the unidentified company failed to process a significant number of accounts receivable, leading to a backlog of unpaid claims, according to the Yakima Herald-Republic.
Before filing for bankruptcy protection, Astria Health had said its electronic health record system and the operations of its revenue cycle had contributed to financial and operational challenges for the organization.
Astria plans to use the bankruptcy process to restructure its finances, enter into a plan of reorganization with its creditors and replace its billing company, and aim to emerge from bankruptcy by the end of 2019.
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