Hospital hoping to recover after filing Chapter 11 Bankruptcy
Posted on Friday, April 8th, 2016 at 7:32 pm
A healthcare company based in Magee, Mississippi has decided to file for Chapter 11 Bankruptcy, an article of Becker’s Hospital CFO reported on April 2.
Reports stated that Pioneer Health Services, which owns hospitals in several states including North Carolina, decided to file for bankruptcy due to financial issues such as the increase in use of “high deductible health plans,” failure of insurance companies to settle payments on time, and other factors related to investment. Danbury-based Pioneer Hospital of Stokes assistant CEO, Pam Tillman, stated that the Chapter 11 process will allow them to pay their creditors in a timely manner and retain their existing vendors. Hospital employees will continue to get their pay during the bankruptcy transition, Tillman claimed. The process may last up to two years and Tillman is hoping to get positive results. Pioneer Health Services also has hospital facilities in Mississippi, Virginia, Tennessee, and Georgia.
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