‘Critical step toward long-term financial stability’
Quorum Health Corporation, which leases Union County Hospital in Anna and owns or leases 22 other community hospitals across the country, last week announced it has entered into a financial restructuring agreement.
The corporation said in a news release that the agreement will protect its employees and ensure its hospitals can continue to care for patients during this uncertain time.
Union County Hospital is unaffected by this restructuring and remains open and available to provide care to patients.
Hospital employees will continue to receive their wages and benefits for the work they perform, and patients and families should experience the same care that exists today.
Quorum Health said in the news release that it has been transparent about the need to reduce the large amount of debt and the associated high interest rate it 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.
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.
Quorum Health has created a dedicated website, www.QuorumForward.com, to provide additional information and answers to questions about the restructuring.
Union County Hospital on Friday, April 10, issued the following statement regarding the reorganization:
“This financial reorganization is a critical step toward the long-term financial stability of our parent company.
“Our hospital will benefit from this reorganization as it will provide us with more resources and better cash flow to address the COVID-19 crisis and to continue serving our patients and the community.
“This will allow us to move forward with the renovation of our pharmacy, as well as upgrading one of our radiology rooms.
“Though this is a challenging time, we expect to continue providing care in our community now and well into the future.”
Union County Hospital is a 25-bed facility which offers inpatient and outpatient care, including emergency, medical and surgical services.
The hospital is a Joint Commission-accredited facility which offers a wide range of services, some of which include digital mammography, on-site MRI services, sleep studies, cardiopulmonary rehabilitation, in-patient and out-patient therapy services, aquatic therapy, outpatient infusion and transfusion services, wound care and more.