Quorum Health Corporation, which owns Red Bud Regional Hospital and 22 other community hospitals across the country, announced Tuesday it has entered into a financial restructuring agreement that will protect employees and ensure its hospitals can continue to care for patients during an uncertain time.
Red Bud Regional Hospital said it is unaffected by this restructuring and remains open and available to provide care to patients. Hospital employees will continue to receive wages and benefits for work performed and patients and families should experience the same care.
“This decision comes at a critical time when all hospitals are facing unprecedented challenges related to the coronavirus pandemic,” said Shane Watson, CEO of Red Bud Regional Hospital. “This is an important step toward long-term financial stability and will ensure that our hospital has the resources and cash flow needed to address the COVID-19 crisis and continue caring for patients and the community.”
By working with key investors in advance, Quorum Health has been able to utilize the rules under Chapter 11 of the U.S. Bankruptcy Code to recapitalize the company.
The financial reorganization is expected to be complete within two months. Debtor-in-possession financing of $100 million will help support Quorum’s operations during the bankruptcy process. A $200 million equity commitment from noteholders will also be funded upon completion of the bankruptcy case.
“In addition to providing care within our own four walls, we’re seeing hundreds of patients though telemedicine and we’ll continue to find new ways to meet our community’s needs,” Watson said.
For more information, call 618-282-3831 or visit RedBudRegional.com.