Springfield Medical Care Systems and Springfield Hospital (the Company) filed a reorganization plan under Chapter 11 of the U. S. Bankruptcy code with the U.S. Bankruptcy Court District of Vermont on Friday, September 18th, 2020.
The Company commenced voluntary restructuring under Chapter 11 of the U. S. Bankruptcy code on June 26, 2019. This filing provided immediate protection and allowed the Company to continue its healthcare operations as it developed a plan of reorganization.
The two organizations, Springfield Medical Care Systems and Springfield Hospital, propose restructuring as independent operating companies. This restructuring is a necessary and positive step forward for both organizations, and both Boards of Directors have made great efforts throughout this process.
As we began the reorganization process, ensuring local access to healthcare services for the region that has counted on us for care for more than 100 years was paramount. Our plans meet two essential objectives in that they provide debt restructuring and ensure ongoing operations and local access to care.
Over the past 18 months, we have reimagined service offerings and worked to balance expenses with revenues and stabilize operations.
While COVID-19 certainly challenged us and delayed our efforts, we remained focused and developed a plan that we believe creditors will support to advance the confirmation process. We greatly appreciate the support of the State of Vermont, our vendors and community members.
The future will be different from an operations point of view. This reorganization will focus the network of federally qualified health centers on core primary care capabilities, including medical, dental and behavioral health services. Springfield Hospital will continue operations, offering a full range of inpatient medical and psychiatric care, emergency and specialty care services, as well as its adult day care program. Although the two organizations will operate separately, they will continue to collaborate and coordinate healthcare for our patients as we have in the past.
We want to thank our Board members for their commitment to this effort; and our staff for their tireless dedication to our patients. Our ongoing success requires support from the communities we serve. We remain confident that the community needs and values the healthcare services we provide, and shares our desire to see them continue well into the future.
Joshua Dufresne, MBA
Acting Chief Executive Officer
Springfield Medical Care Systems
Michael Halstead, MBA
Interim Chief Executive Officer