Fitzgibbon Hospital in Marshall has announced that it has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code and has secured a potential partner for sale of the facility. No contract has been signed and the process is still ongoing.

According to a news release, this step is intended to stabilize the hospital’s financial position while ensuring uninterrupted care for patients. Hospital leadership emphasizes that the Chapter 11 process will allow Fitzgibbon Hospital and The Living Center to continue normal operations without disruption.

Fitzgibbon President and Chief Executive Officer Angy Littrell says “Filing for Chapter 11 gives us the time and structure needed to address financial challenges while continuing to provide the critical services our patients and residents depend on every day.” She also states that the hospitals top priority will always be providing the critical services that patients and residents depend on.

Like many rural hospitals across the country, Fitzgibbon Hospital has faced increasing financial pressures in recent years, including rising operating costs, workforce shortages and reimbursement at less than cost from non-negotiable governmental payers like Medicare and Medicaid and non-payment or underpayment for services provided from commercial insurers. This has caused the hospital to undertake a series of expense-reduction measures in the last three years, including the closure of its Intensive Care Unit, inpatient Behavioral Health Unit, Home Health and Hospice agencies, chiropractic clinic and ceasing operations at two primary care Rural Health Clinics in Fayette and Brunswick, and elimination of executive leadership positions. Most recently, in an effort to monetize idle assets, the hospital has an approximate 44-acre parcel of land adjacent to the hospital campus under contract for sale

After carefully evaluating all available options and consulting with healthcare advisory firms specializing in complex restructuring situations, as well as attorneys, the organizations’ Board of Trustees and management determined the Chapter 11 filing in concert with a proposed sale was the best path forward. Prior to the sale, the hospital engaged in the marketplace via a company that pairs at-risk, not-for-profit organizations with suitable partners. Fitzgibbon will continue to operate its acute care hospital including its 24/7 Emergency Department, its core services and long-term care facility, The Living Center. Leadership’s primary goal is retaining access to critical healthcare services in the community. Patients with appointments for office visits or procedures should keep them and arrive as instructed. Fitzgibbon leadership encourages the community to continue to seek care at the hospital as needed.

For updates and additional information, visit www.fitzgibbon.org or contact Manager of Marketing and Spiritual Care Richard DeFord at 660-831-3235. The complete release from Fitzgibbon can be read here: press-release-reorganization_final.