TRIOS Hospital Files For Chapter 9 Bankruptcy Protection, Debt Plan Coming
The move will not result in any layoffs, say officials, but does provide protection for the hospital while it seeks ways to pare down and reorganize it's debt.
The hospital board voted 6-0 to officially file for Chapter 9, as TRIOS seeks a way to deal with some $221 million in debt. According to court papers, there are between 1,000 and 5,000 creditors.
According to the definition of Chapter 9 from uscourts.gov:
"This chapter of the Bankruptcy Code provides for reorganization of municipalities, which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts."
The hospital will now prepare what is called a plan of adjustment and disclosure statement, as well as a plan to repay it's creditors.
TRIOS has been struggling for several years, a combination of debt and heavy competition from other healthcare providers, according to the Tri-City Herald.
The hospital and medical group did do some restructuring of it's workforce, including some layoffs and shuffling workers, as well as some leaving due to retirement and attrition.
More details expected once these reports are done.
More From 870 AM KFLD
