Patient refund checks on hold amid Vermont health system's bankruptcy

Springfield (Vt.) Medical Care Systems said some local banks have put patients' refund checks on hold if they were issued but not cashed before June 26. 

The health system, which includes 25-bed Springfield (Vt.) Hospital and nine community health centers, made the announcement Aug. 17, nearly two months since it filed for Chapter 11 bankruptcy protection.

As the health system goes through bankruptcy reorganization, a hold is required on any checks issued, but not cashed before the bankruptcy filing date, hospital officials said.  

"These transactions are included as part of the bankruptcy proceedings governed by the bankruptcy court," they added. "SMCS and Springfield Hospital sincerely regret any hardships this has caused our patients. SMCS and Springfield Hospital are working with counsel and doing everything else possible, within the restrictions imposed by the bankruptcy code, to manage the situation."

The health system has said it expects the bankruptcy reorganization process to last about 12 months.


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