[grey-area]

No, it is not. How does a government funded org ever face bankruptcy, unless the government wants it to for political reasons? The NHS provides healthcare to the entire nation for about 7% of GDP. If there's any question of bankruptcy there are plenty of other areas to look at first.

[JHSheridan]

> How does a government funded org ever face bankruptcy

When there is no money to pay its debt. Simple as that.

[dragonwriter]

> How does a government funded org ever face bankruptcy, unless the government wants it to for political reasons?

It depends on the bankruptcy laws, and its possible that a "government funded" org still would be covered by them.

OTOH, in this particular case, its probably the common confusion of "bankruptcy" with "insolvency" playing a major role. Insolvency is usually the reason an entity enters (voluntarily or not) bankruptcy, but the two states are not equivalent.

[JHSheridan]

You're right. Insolvency is a more accurate term to use in this case.