SPRINGFIELD, VT–Today, June 26, Springfield Medical Care Systems (SMCS) and Springfield Hospital filed for Chapter 11 – Reorganization bankruptcy protection in Rutland, US Bankruptcy Court for the District of Vermont. The hospital and health centers will remain open and operating as usual while the organizations work through the Chapter 11 process, which is expected to last approximately 12 months, but may be longer depending on a number of factors.
Filing for Chapter 11 – Reorganization
protection and debt restructuring “enables the hospital and health centers to continue
providing high quality health care in local communities and to keep jobs in the
region,” said SMCS in a statement released late Monday afternoon.
expect minimal impact on operations and staff during the Chapter 11
process. All employees will be paid and no layoffs are
debt will allow both organizations to emerge from Chapter 11 protection on better
financial footing,” said a spokesperson.
“The health centers and hospital are not closing. Patient health and safety remain our
top priority and we will continue to provide excellent health care to the
region during the reorganization process,” said Joshua Dufresne, MBA, Acting Chief
Executive Officer of SMCS.
Over the past year, “in spite of
the numerous steps SMCS and SH have taken to operate more efficiently, a
combination of local and national factors have contributed to conditions that
have made Chapter 11 reorganization a necessary step, including high levels of
charity care and bad debt, large claims against the self-insurance pool,
inadequate reimbursements, high-cost temporary providers, and a payer mix that
includes increasingly fewer people covered by private insurance,” said SMCS in the statement.
“The situation here is dynamic and we intend to keep our staff, patients,
and the broader community informed of our progress,” said Interim Springfield
Hospital CEO Mike Halstead. “The
one thing we know for sure is we need the community’s support. If you need
hospital services, come see us.”
SMCS and Springfield Hospital are planning community meetings throughout
July in Springfield, Ludlow, Bellows Falls, Londonderry and Charlestown. All meetings are open to the public and
dates will be published on www.springfieldmed.org.
Medical Care Systems and Springfield Hospital medical staff will continue to
provide excellent health care and our dedication to our patients will not change,”
said Chief Medical Officer, Cecil Beehler, II, MD. “Our doors are open and
we are here when you need us.”
more information, please visit www.springfieldmed.org or
About Springfield Medical Care Systems and Springfield Hospital
Medical Care Systems is a not-for-profit, community-based health care system
that integrates nine community health centers and Springfield Hospital. SMCS
serves southeastern Vermont and southwestern New Hampshire. Services are
accessible to all, based on a sliding fee scale, and include primary and
preventive care for people of all ages, pediatrics, health screenings,
behavioral health services, dental and vision care, access to discounted
pharmaceuticals, diagnostic lab and radiology services, and a broad array of
acute hospital and specialty services.
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