Maine hospital files for bankruptcy with $25M in debt

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Calais (Maine) Regional Hospital entered Chapter 11 bankruptcy protection Sept. 17. The 25-bed hospital owes roughly $25 million to nearly 1,900 creditors, reports the Bangor Daily News.

According to documents filed in the bankruptcy case, Calais Regional Hospital has incurred losses for several years and faces a cash shortfall that requires restructuring of its balance sheet. CEO Rodney Boula said he hopes the bankruptcy process will allow the hospital to restructure its debts and implement operational changes to boost earnings.

"The debtor's goal in filing for bankruptcy is to position the company to be able to stay open, continue providing services … and make further operational changes to ensure the delivery of high-quality services," Mr. Boula wrote in court documents filed Sept. 17. "If the debtor is unable to successfully navigate restructuring, it may be forced to close."

The U.S. Department of Agriculture is Calais Regional Hospital's largest creditor. As of Sept. 9, the outstanding balance on the hospital's USDA loan was $10.8 million, according to court documents. The Bangor Daily News reports that the hospital owes more than $3.2 million to several vendors, including Brentwood, Tenn.-based Quorum Health Services. Quorum managed the hospital until last year.

Calais Regional Hospital is the second critical access hospital in Maine to file for bankruptcy this year. In January, Penobscot Valley Hospital in Lincoln, Maine, entered Chapter 11 bankruptcy protection.

More articles on healthcare finance:

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Illinois hospital will stay open — for now
Hospital operator closes 2 facilities after leadership exodus

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