CALAIS — Calais Regional Hospital will remain open despite having filed for Chapter 11 bankruptcy protection Sept. 17.
“Filing for Chapter 11 protection during debt reorganization enables the hospital to continue providing high-quality health care in local communities and to keep jobs in the region,” according to a hospital statement. “Chapter 11 is also a tool to restructure legacy and operational debt.”
The hospital does not expect to lay off any of its more than 275 employees. The process of restructuring debt, which is expected to last about 12 months, will allow the hospital to emerge on better financial footing and keep important local hospital services running, the statement says.
Over the last several years, the hospital has taken numerous steps toward operating more efficiently, reducing losses from $2.64 million in 2014 to approximately $574,600 in 2018. Despite this, high levels of charity care, bad debt, inadequate reimbursements and increasing regulatory requirements have made restructuring under Chapter 11 a necessity, the statement says.
“We remain committed to providing exceptional patient care during the Chapter 11 process,” said Rod Boula, CEO. “All departments are operating as usual and our talented team is focused on delivering high-quality health care services to our community.”