Vermont hospital splits with 9 health centers after bankruptcy filing

As part of its bankruptcy plan, Springfield (Vt.) Hospital will sever ties with nine health centers, according to the VT Digger. 

The hospital and nine health centers in Vermont and New Hampshire currently operate under the parent organization Springfield Medical Care Systems.

The hospital and clinics filed for Chapter 11 bankruptcy last June after they lost about $14 million and stopped paying vendors.

They filed for bankruptcy as separate entities and now plan to file separate bankruptcy exit plans.

"The belief was that if that was the direction we were moving in — to have both the organizations operate on their own — then that would be the best way to file bankruptcy petitions," interim Springfield Hospital CEO Michael Halstead said.

Since filing for bankruptcy, the hospital has tried to cut costs by closing its childbirth center, laying off dozens of employees and cutting pay. The hospital also hired a new emergency room vendor.

Read the full report here

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