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Vermont’s Springfield hospital likely to declare bankruptcy

May 30, 2019

SPRINGFIELD, Vt. (AP) — A small Vermont hospital that has been struggling with its finances will likely file for bankruptcy protection in the near future so it can restructure its finances, its chief executive officer said.

Springfield Hospital interim CEO Mike Halstead said the filing of a Chapter 11 bankruptcy is probably needed so the hospital can survive, Vermont Public Radio reported .

The bankruptcy process will also require the 25-bed, critical access Springfield Hospital to come up with a long-term financial plan that will most likely mean having another health care system take over the business.

“We need to find a partner who’s got a little bit more resources than what we have,” Halstead said at a Wednesday public meeting in Springfield. “As a stand-alone hospital as Springfield Hospital and Medical Systems have been for the last 105 years; not in the cards for the future.”

He said Springfield is talking with Dartmouth-Hitchcock Medical Center, but no deal has been finalized and there are other medical systems that could potentially take over Springfield’s business.

Springfield Hospital lost about $14 million over the past two years. It has closed its childbirth center, laid off almost 30 staff members and made changes to its emergency department.

Halstead says the organization would likely lose up to $3 million this year.

Halstead told the people that one way they could help the hospital would be to seek care there when needed.

“Come to our facility because if you don’t use the hospital when you need health care, you’re going to lose the hospital,” he said. “And I don’t think any community wants to lose their hospital.”

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Information from: WVPS-FM, http://www.vpr.net

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