The Calais Regional Hospital (CRH) in Maine has filed for Chapter 11 bankruptcy protection.
But officials say operations will continue as normal during the process, which is expected to take about a year.
In a news release Tuesday, the hospital said the process will allow for the reorganization of its legacy and operational debt.
“Over the last several years, in spite of the numerous steps CRH has taken to operate more efficiently, a combination of local and national factors have created conditions that have made debt restructuring in Chapter 11 a necessary step,” read the news release.
“These factors, including downward trending of utilization, high levels of charity care and bad debt, inadequate reimbursements, and increasing regulatory requirements have all contributed to significant losses.”
The hospital said it has reduced losses from $2.64 million in 2014 to approximately $574,600 in 2018.
Rod Boula, the hospital’s CEO, said they hope to emerge from the restructuring as a stronger hospital.
“With continued community support and steady utilization of our services, we can stabilize this hospital and provide high-quality health care to the region now and in the years to come,” said Boula.
The hospital currently employs over 275 people and is the largest employer in Calais.
