Quorum Health Corporation, which owns Fannin Regional Hospital and 22 other community hospitals across the country, has filed for bankruptcy protection.
A statement from Fannin Regional Hospital last week said that Tuesday, April 7, Quorum Health had entered into a financial restructuring agreement that will protect its employees and ensure its hospitals can continue to care for patients at this time.
According to Fannin Regional Hospital’s chief executive officer, Jason Jones, the local hospital is unaffected by this restructuring and remains open and available to provide care to patients.
He also said that hospital employees will continue to receive their wages and benefits, and patients and families should experience the same care that exists today.
“This decision comes at a critical time when all hospitals are facing unprecedented challenges related to the coronavirus pandemic,” Jones said. “This is an important step toward long-term financial stability and will ensure that our hospital has the resources and cash flow needed to address the COVID-19 crisis and continue caring for patients and the community.”
The statement said Quorum Health officials have discussed their need to reduce the large amount of debt and the associated high interest rate the corporation inherited when it was formed in 2016. By working with key investors in advance, the company has been able to utilize the rules under Chapter 11 of the U.S. Bankruptcy Code to recapitalize the company.
The financial reorganization is expected to be complete within two months and will better position the hospital for future growth, according to Jones. Under the terms of the plan, which is subject to court approval, all suppliers – including local businesses providing goods and services – will continue to be paid in full.
“We’ve always been committed to serving our community, and I’m so glad that will continue and grow,” Jones said. “In addition to providing care within our own four walls, we’re seeing hundreds of patients though telemedicine, and we’ll continue to find new ways to meet our community’s needs. I couldn’t be prouder of our dedicated physicians, nurses and other team members and, we are grateful for the community’s loyalty and continued support through this challenging time.”