White Rock Medical Center: Health Care Business Chapter 11 Filing

White Rock Medical Center, LLC operates a community hospital in East Dallas at 9440 Poppy Dr. and promotes 24/7 access to emergency and specialty care on its hospital site. Public-facing materials highlight emergency medicine, cardiology, bariatric surgery, neurology, medical detoxification, wound care, and primary care services, plus 24-hour virtual urgent care and round-the-clock availability on its patient FAQ.

The debtor filed chapter 11 on January 20, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas (Case No. 26-90115). Court filings identify White Rock Medical Center, LLC as a health care business and a small business debtor that did not elect Subchapter V, with estimated liabilities of $50 million–$100 million versus assets of $10 million–$50 million. In a first-day declaration, management described White Rock as a 218-bed safety-net hospital that served roughly 30,000–35,000 unique patients in 2025, with about 80% of patients covered by Medicare, Medicaid, self-pay, or uninsured programs. The petition lists a Houston principal address, while public materials continue to identify the Dallas campus, underscoring that the bankruptcy case centers on the operating entity rather than a single property.

Restructuring and first-day relief

Filing catalyst and acquisition dispute. A first-day declaration filed January 23, 2026 describes the September 2023 acquisition of White Rock Medical Center from Pipeline Health and alleges that the seller overstated receivables and understated liabilities by more than $11 million. The declaration cites vendor and payroll interruptions before closing and the loss of access to the electronic health record system in 2024, which management said disrupted collections and vendor relationships. The declaration states the debtor group operates two hospitals—White Rock Medical Center in Dallas and Heights Hospital in Houston—so early-case relief is framed around keeping both facilities open and staffed.

Capital structure at filing. The declaration identifies SRC Hospital Investments I, LLC (Pipeline) as the secured lender tied to the White Rock purchase, with approximately $5.37 million outstanding at filing. It also lists roughly $7.6 million of equipment-secured debt, an unsecured claim of about $17 million owed to REILS related to a $15 million credit facility, and approximately $16.3 million in other general unsecured claims. The debtors state that their restructuring plan contemplates debtor-in-possession financing from REILS to support operations during chapter 11.

Cash collateral and interim relief. The court entered an interim cash collateral order on January 27, 2026 authorizing use of Pipeline’s cash collateral and granting replacement liens and superpriority protection for postpetition diminution. The order sets a final hearing for February 17, 2026, with objections due February 10. The court also entered a package of interim first-day orders between January 26 and January 27 covering cash management, critical vendors, utilities, wages and benefits, insurance, taxes, patient privacy, and schedule extensions.

Claims and noticing agent. The court approved retention of Epiq Corporate Restructuring, LLC as claims and noticing agent, placing Epiq in charge of the official claims register and case notices. The court also authorized a consolidated creditor list and notice of commencement process for the related debtor group, and U.S. Trustee solicitation materials were served shortly after filing.

Related debtor filings. Affiliated entities filed in the Southern District of Texas on January 21, 2026. These cases include operating and administrative entities that support the hospital group.

The presence of payroll and management affiliates in the related filings signals that back-office services may be centralized across the group. Intercompany arrangements for payroll processing, IT, or shared services will shape how liquidity, staffing, and vendor payments are coordinated during the chapter 11 process.

Hospital profile and service footprint

The first-day declaration describes White Rock Medical Center as a 218-bed safety-net hospital serving East Dallas, with roughly 30,000–35,000 unique patient visits in 2025 and a payor mix that is approximately 80% Medicare, Medicaid, self-pay, or uninsured. The declaration also notes that the debtor group operates two hospitals—White Rock Medical Center in Dallas and Heights Hospital in Houston—indicating that operational decisions in chapter 11 span more than one facility.

Public-facing materials list a broad set of service lines, including emergency care, cardiology, bariatric surgery, neurology, medical detoxification, wound care, and primary care on the hospital site. The facility emphasizes 24/7 availability on its FAQ and promotes 24-hour virtual urgent care to extend access beyond the physical campus.

The hospital states that it is accredited by the Center for Improvement in Healthcare Quality (CIHQ), licensed by the State of Texas, and certified by CMS on its about page and FAQ. It also publishes a complaint process that directs patients to CIHQ, highlighting the compliance and oversight framework that continues to apply during chapter 11.

Ownership, litigation, and operating signals

The hospital’s lineage predates the current ownership. Local reporting traces the campus back to Doctors Hospital, which opened in 1959, and notes multiple ownership changes that included National Medical Enterprises, Tenet Healthcare, Baylor Scott & White, and Pipeline Health. The facility has operated under several names, including City Hospital at White Rock, before its current branding as White Rock Medical Center, according to a local history recap.

Pipeline Health acquired the hospital in 2018 and rebranded it as White Rock Medical Center in January 2022. Later that year Pipeline filed chapter 11 while operating the Dallas facility, citing pandemic-era labor and supply costs and payment delays in its restructuring announcement. Local coverage later described Pipeline’s plan confirmation and leadership changes as it exited bankruptcy.

Pipeline announced that it closed the sale of White Rock Medical Center to Heights Healthcare of Texas, LLC effective October 5, 2023. Industry coverage of the sale announcement noted the planned transition period for revenue-cycle and IT functions, highlighting the operational complexity of the ownership change.

In February 2024, Heights Healthcare of Texas sued Pipeline affiliate SRC Hospital Investments I, LLC in Dallas County, seeking to restrain an asset sale and require continued provision of critical services under the transaction documents; the case later closed, according to the state court case summary.

Operational stress surfaced publicly in May 2024 when the hospital laid off 158 employees—about 35% of its 460-person workforce—and temporarily stopped accepting EMS-transported patients. That report cited hospital leadership statements tying the layoffs to litigation expenses. The facility resumed EMS intake on May 7, 2024 at 7 a.m. but continued to divert stroke and STEMI patients because of reduced staffing, while noting that it typically receives about 15 EMS-transported patients per day and operates as a Level IV trauma center. Dallas Morning News and D Magazine both described the temporary diversion and staffing cuts, underscoring how quickly access can shift when staffing levels change.

Texas hospital financial pressures

Texas hospital operators face a broader environment of reimbursement and access pressure. A 2025 report cited by the Daily Yonder noted that Texas has 156 rural hospitals, with 87 at risk of closure and 25 closures over two decades. The report also cited a statewide uninsured rate near 22% for adults ages 19–64 and said 108 Texas rural hospitals had reduced or lost critical services. These system-wide pressures are part of the backdrop for safety-net hospitals that rely heavily on Medicare, Medicaid, and self-pay volumes. Daily Yonder’s coverage provides the statewide context.

The 2025 Rural Health State of the State report from Chartis reported 182 rural hospital closures or conversions nationwide since 2010, with 46% of rural hospitals operating at negative margins and 432 identified as vulnerable to closure. Texas had 47 vulnerable hospitals and 26 communities that have lost inpatient care since 2010. While White Rock Medical Center is not a rural facility, the statewide uninsured rate and margin pressure in Texas hospitals form part of the context for safety-net operators with high Medicare, Medicaid, and self-pay exposure. Chartis’ report outlines the national and Texas trends.

Operational and stakeholder considerations

Patient care oversight. As a health care business, the case requires appointment of a patient care ombudsman; the statutory 30-day window puts the appointment deadline around February 19, 2026. The court also approved patient-information confidentiality procedures early in the case, reflecting the privacy obligations tied to ongoing care.

Liquidity and collateral. The interim cash collateral order allows operations to continue using Pipeline’s collateral while providing replacement liens and superpriority protection, with a final hearing on February 17. The debtor also said it expects debtor-in-possession financing from REILS, signaling that ongoing liquidity will be central to the restructuring path.

Vendor and utility continuity. Interim orders authorized continued cash management and credit card programs, set a $47,500 utilities adequate-assurance deposit, and permitted up to $593,592 in critical vendor payments subject to trade agreements. The wage and benefit order allowed ordinary-course payroll while limiting insider retention payments, and the cash management order extended 11 U.S.C. 345(b) compliance to March 6, 2026.

Claims and notice process. The court’s approval of Epiq as claims and noticing agent points to a formal claims administration process, with consolidated creditor lists and court-directed notices to parties in interest.

Workforce and access. The 2024 layoffs and temporary EMS diversion demonstrate the sensitivity of hospital access to staffing levels. Maintaining service continuity will remain a core consideration alongside cost reduction in the chapter 11 process.

Payer and directory visibility. The hospital’s listings in community and Medicaid directories and its emphasis on 24/7 access underscore the importance of maintaining payer relationships and uninterrupted billing as the case proceeds.

Frequently Asked Questions

When did White Rock Medical Center file chapter 11?

White Rock Medical Center, LLC filed for chapter 11 protection on January 20, 2026.

Where is the White Rock Medical Center bankruptcy case pending?

The case is pending in the U.S. Bankruptcy Court for the Southern District of Texas under Case No. 26-90115.

Is White Rock Medical Center a Subchapter V case?

No. The petition checks the small business debtor box but does not elect Subchapter V.

What does the “health care business” designation mean here?

The petition identifies the debtor as a health care business, which triggers oversight obligations in chapter 11, including a patient care ombudsman. The statutory 30-day appointment window puts the initial deadline around February 19, 2026 unless the court extends or waives it.

Are there related debtor filings tied to this case?

Yes. Adjacent Southern District of Texas cases filed on January 21, 2026 include Heights Healthcare of Houston, LLC; Heights Healthcare of Texas, LLC; Ashland Healthcare, LLC; National Payroll Services LLC; NCP Management, LLC; and North Houston Surgical Hospital, LLC.

Where is the hospital located?

The hospital’s public materials list the campus at 9440 Poppy Dr. in Dallas.

Who is the claims agent for White Rock Medical Center?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

For more restructuring coverage and case updates, explore the ElevenFlo blog.