SPRINGFIELD, Vt. — On Wednesday, Springfield Medical Care Systems (SMCS) and Springfield Hospital filed for Chapter 11 – Reorganization bankruptcy protection in Rutland, U.S. 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.
Administrators expect minimal impact on operations and staff during the Chapter 11 process. All employees will be paid and no layoffs are planned. Restructuring debt will allow both organizations to emerge from Chapter 11 protection on better financial footing.
“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.
“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.
“Springfield 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.”
For more information, please visit www.springfieldmed.org or www.springfieldhospital.org.
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