Pioneer Health Services files for bankruptcy in hopes of long-term viability

Magee, Miss.-based Pioneer Health Services, which owns hospitals in Georgia, North Carolina, Mississippi, Tennessee and Virginia, has filed for Chapter 11 bankruptcy, according to The Stokes News.

Officials from Pioneer Hospital of Stokes in Danbury, N.C., hope the bankruptcy process, which could take up to two years, will stabilize operations.

"It will allow us to keep the vendors we have for our supply base and pay our creditors over time," Pam Tillman, the hospital's assistant CEO, said in a memo to staff, according to the report. "The ultimate goal is to stabilize the entire organization for a long term successful future for the communities and patients we serve."

Ms. Tillman reassured hospital staff they would continue to be paid during the restructuring process.

Delays in payment by insurance companies, increased use of high deductible health plans and the need to invest in an EHR system were some factors that led to the bankruptcy filing.

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