Springfield hospital, health centers, file for bankruptcy
SPRINGFIELD, Vt. (AP) — A small Vermont hospital and health centers struggling with finances have filed for bankruptcy protection.
The Valley News reports Springfield Medical Care Systems on Wednesday filed for Chapter 11 bankruptcy protection. It said its hospital and health centers will stay open and no layoffs are planned.
The health care organization, which includes the 25-bed Springfield Hospital, plans to hold community meetings next month in Springfield, Ludlow, Bellows Falls, Londonderry, and Charlestown.
Hospital officials had said bankruptcy was possible as the health care system tries to restructure debt of approximately $6 million to vendors and $12 million to the bank. Its website cites high levels of charity care and bad debt, large claims against the organization’s self-insurance pool, low reimbursement from insurers and high-cost temporary providers as reasons the bankruptcy filing was necessary.
Information from: Lebanon Valley News, http://www.vnews.com