Vermont health system files for bankruptcy

Springfield (Vt.) Medical Care Systems filed for Chapter 11 bankruptcy protection on June 26.

The health system, which includes 25-bed Springfield (Vt.) Hospital and nine community health centers, said no layoffs are planned and operations will continue as normal during the bankruptcy process.

"The hospital and health centers are not closing," Joshua Dufresne, acting CEO of SMCS, said in a press release. "Patient health and safety remain our top priority and we will continue to provide excellent healthcare to the region during the reorganization process."

Entering Chapter 11 bankruptcy will allow the nonprofit health system to reorganize its debt load, including about $6 million in debt to vendors and approximately $12 million in bank debt, according to Valley News. The health system said the reorganization process is expected to last roughly one year.

More articles on healthcare finance:

Philadelphia hospital to close: 5 things to know
45 financial benchmarks for hospital executives
10 hospitals seeking CFOs

 

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months