SPRINGFIELD, Vt. – The U.S. Bankruptcy Court for the District of Vermont has confirmed the Chapter 11 reorganization plans of Springfield Medical Care Systems and Springfield Hospital. Confirmation of their Chapter 11 plans is the final step necessary for the two companies to exit Chapter 11 and the culmination of an 18-month debt-adjustment process. The companies’ Chapter 11 exit plans bring existing debt to a level that the companies can each support and lays the groundwork to preserve their charitable health care mission, business operations, and jobs.
“Our Chapter 11 work began with the goals of immediately stabilizing our overall health system, conducting a complete financial and situational assessment, and developing reorganization plans that enabled us to restructure long-term debt in a way that allowed for sustainability. Ensuring local access to high quality healthcare services for our region was always our core consideration,” comments George Lamb, Chairman of the Board for SMCS. “Achieving these goals, in spite of the many sudden and difficult challenges presented by Covid-19, is a credit to our employees, medical staff, and Board members, who have worked diligently to bring us to where we are today.”
“We are pleased to share this great news with our communities, letting everyone know our team is here, and ready to provide excellent care whenever we are needed,” added Rob Cantu, M.D., Medical Staff President. “The corporate structure is different for the two organizations, since they are now separate corporations with unique governing Boards of Directors. However, patients receiving healthcare services will experience the same quality of care they have come to expect from SMCS and Springfield Hospital.”
“The two organizations will continue to work in close collaboration. Primary care will continue to be available in the communities currently served by SMCS; namely, Springfield, Bellows Falls, Ludlow, Londonderry, Vt., and Charlestown, N.H. Vision and dental services will also continue,” comments Joshua Dufresne, Acting Chief Executive Officer for Springfield Medical Care Systems. “The primary care network will work closely with Springfield Hospital, as it has in the past, accessing a range of services including emergency care, specialty care, surgery, inpatient care and outpatient testing.”
The Chapter 11 reorganization plan was negotiated with several interested parties and includes reducing long-term debt to a sustainable level for each company. This restructuring provides needed financial stability, opportunity for growth, and a renewed commitment to serving evolving healthcare needs of patients throughout the region.
“This success is certainly an important milestone and our entire team shares great pride in this accomplishment,” commented Michael J. Halstead, Interim Chief Executive Officer for Springfield Hospital. “We must express our appreciation to our creditors for their cooperation regarding our reorganization plans; and especially the State of Vermont for their commitment to Springfield Hospital and SMCS. Ongoing success for both companies requires community support, and choosing local healthcare services whenever appropriate. We are excited about the future and know that, working together, we can sustain key healthcare services that are conveniently accessible within the region.”
Jim Rumrill, Chairman of the Springfield Hospital Board, added, “Both organizations offer essential services to our region and we have a responsibility to continue these critical services well into the future. We are grateful to our staff, Board members, and the communities we serve for the role they’ve played in helping us reach this important goal.”