Vega Baja hospital seeks Chapter 11 reorganization, says services will continue.

By THE STAR STAFF

Wilma N. Vázquez Hospital announced this week it has begun a financial reorganization under Chapter 11 of the U.S. Bankruptcy Code, a move hospital leaders said is aimed at stabilizing operations and keeping services available for patients.

Attorney Jesús E. Batista Sánchez said the filing follows what he described as a “structural crisis” affecting healthcare providers across Puerto Rico, but argued that reorganization will help the hospital meet its obligations to employees, physicians and suppliers while continuing to serve the community.

Wilma N. Vázquez Hospital Executive Director Denise M. Chinea Rivera said the facility will remain open with its current workforce of more than 500 employees and will not carry out layoffs as a result of the Chapter 11 process. She said all units will continue operating, including the hospital’s 24-hour emergency room.

Chinea Rivera also pointed to oversight visits by the island Department of Health and the Office of the Patient Advocate, saying the hospital has maintained uninterrupted services and has operated in compliance with applicable laws and regulations while responding to information requests from the Health Department.

The hospital, founded more than 40 years ago by physicians, said it is working to ensure “uninterrupted” care for patients while strengthening its finances through the court-supervised reorganization.

The filing comes as hospital operators across the island report pressure from shifting demographics and financial strain. A 2025 report by at-large Rep. Gabriel Rodríguez Aguiló warned that dozens of the island’s 42 hospitals could be at risk of bankruptcy in the coming years, citing delayed payments from insurers and rising operating costs.

Recent high-profile cases underscore the fragility of the sector. In August 2025, the Asociación Hospital del Maestro Inc. filed for Chapter 11 protection, and the Health Department later maintained a closure order for the San Juan facility. The broader financial distress has been fueled by a shrinking and aging population, higher-acuity patients and persistent reimbursement challenges, analysts and policymakers have said.