The Bellevue Hospital in Toledo, Ohio, is a step closer to becoming part of Sandusky, Ohio-based Firelands Health after a bankruptcy court approved the 50-bed hospital’s Chapter 11 reorganization plan, the Sandusky Register reported April 18.
Bellevue filed for Chapter 11 bankruptcy protection in February, citing many of the challenges currently facing rural and independent hospitals, including rising operational costs, access to capital, regulatory complexity and funding constraints.
Pending the Chapter 11 reorganization and regulatory approvals, Firelands Health will become the sole owner of The Bellevue Hospital. This would include capital investments to maintain hospital-based services as well as sustain and expand services at other care sites. The acquisition is expected to be completed in the second quarter of 2025.
Fireland’s CEO Jeremy Normington-Slay said the system has agreed to refinance Bellevue’s bank debt of about $17 million, according to the report. He said it will also cover, “substantially, all of the outstanding liabilities and accounts payable, likely no more than $6.5 million.”
Firelands will also invest capital to run the hospital, which is estimated to be about $2 million to $3 million for the first five years, according to the report.
“We fully expect The Bellevue Hospital to complete its financial turnaround over the next 12 to 18 months or so, and the operations at The Bellevue Hospital will be able to service, pay for, the debt payments and pay for the majority of their capital needs,” he said according to the report.