TEXAS — Senior Care Centers LLC, the largest nursing home provider in Texas, filed for Chapter 11 bankruptcy Tuesday.
The company says "Its facilities are expected to continue to run without interruption, and the bankruptcy filing will have no impact on patients and residents or the care they receive."
The company owns four nursing home facilities in Southeast Texas; The Meadows in Orange, Summer Place in Beaumont, and Lake Arthur Place and Cypress Glen in Port Arthur.
Summer Place in Beaumont and The Meadows in Orange do plan to remain open.
Its parent company Senior Care Centers LLC serves more than 10,000 thousand patients and 11,000 employees will be statewide.
Both Port Arthur facilities remain closed after being investigated for allegedly mistreating patients during Tropical Storm Harvey.
Last year, video showed patients being evacuated during the flooding.
Rebecca Powell's father lived in Cypress Glen for nearly a year and shares her feelings toward the facility.
"His treatment as far as I could tell is good in the facility," says Powell. "What they did during Harvey was inexcusable...I had to find him myself."
"I'm not surprised at all, I'm sure they'll be a massive lawsuit," she said. "I don't intend to personally get involved in it...what happened, happened and money is not going to fix it."
"Chronic underfunding of long term care has become the norm in Texas. 75% of Texas nursing homes report the state's reimbursement does not cover the cost of care," said President and CEO of the Texas Health Care Association Kevin Warren.
"Funding challenges are making it difficult for nursing homes to compete in the job market... This has reached a crisis level, and the timing could not be worse," Warren said.
The Chief Operating Officer of Senior Care Centers released a statement saying, "This (bankruptcy) plan allows us to address certain financial issues while continuing to provide the critical care and support on which our residents rely... while we work to transition certain communities to new operators."
EDITORS NOTE: An on-air version of this story incorrectly stated that the Beaumont and Orange locations were closing, 12News regrets the error.