Marshall, Mo.-based Fitzgibbon Hospital has voluntarily filed for Chapter 11 bankruptcy protection as the independent rural hospital pursues a potential sale of the facility.
The hospital said it has faced increasing financial pressures, including rising operating costs, workforce shortages and reimbursement at less than cost from government payers, according to an April 21 news release from Fitzgibbon.
Fitzgibbon’s board and management determined that filing for Chapter 11 in concert with a proposed sale was the path forward after consulting with healthcare advisory firms and attorneys, the release said.
Prior to the decision to sell, Fitzgibbon’s leadership worked with a company that pairs at-risk nonprofit organizations with suitable partners, according to the release. The hospital said it has secured a partner for the sale of the facility, but has not disclosed the name of the prospective buyer.
The hospital said it has taken a series of cost-reduction measures the past three years, including the closure of its ICU, inpatient behavioral health unit, home health and hospice agencies, chiropractic clinics and ceasing operations at two primary care rural health clinics. It also eliminated some executive leadership positions.
“Filing for Chapter 11 gives us the time and structure needed to address financial challenges while continuing to provide the critical services our patients and residents depend on every day,” Fitzgibbon President and CEO Angy Littrell said in the release.
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