Sundance Behavioral Health System Files for Bankruptcy

After reports that the Arlington location of Sundance Behavioral Health System held patients against their will, the entire system filed for Chapter 11 bankruptcy on Thursday. Bankruptcy court documents show the system owes 50 to 99 creditors between one and 10 million dollars, and it reports having only $500,00-$1,000,000 in assets.

In December, the Arlington location surrendered its license and ceased operations after the allegations were made. The Dallas Morning News reports that most of the 20 allegations made in November and December had to do with holding patients against their will, such as detaining a minor and illegally holding a patient for up to 48 hours.

According to NBCDFW, the law firm representing Sundance Behavioral Healthcare System, said it couldn’t afford to stay open because of legal costs, and patients have been transferred to other hospitals.

Inspectors from the Texas Health and Human Services Commission visited the hospital numerous times, finding problems with the care. Despite the reports of substandard care, the hospital only received fines of $28,500 in August 2016 for pervious violations and $650 in 2017 for not holding required fire drills, according to NBC.

Sundance runs three hospitals in Garland, Arlington, and Fort Worth. Read the DMN story here.