Categories
News

Tyrone Hospital files Chapter 11 bankruptcy

Some months ago Tyrone Hospital leaders indicated they were considering bankruptcy as a strategic move to support the hospital’s financial turnaround efforts. Yesterday, hospital leaders announced that Chapter 11 bankruptcy has been filed.
The hospital also filed Chapter 11 bankruptcy for Tyrone Medical Associates, a physician group practice that is a wholly owned subsidiary of Tyrone Hospital.
Walter Van Dyke, Chief Executive Officer said the bankruptcy filing will not affect provision of the services provided by the hospital of TMA. Tyrone Hospital will remain open and people will continue to have full access to all of the services the hospital provides. TMA will also remain open and people will have full access to TMA physicians.
Chapter 11 bankruptcy allows the hospital and TMA to continue operating and will provide some protection for both while a reorganization plan is developed to help the hospital fully achieve its financial turnaround goals.
Van Dyke said the current healthcare environment is challenging for all hospitals especially small ones like Tyrone. He said like many small hospitals, Tyrone has been struggling for some years.
“We have taken various steps to reduce costs and increase revenue. All of these actions have been helpful but collectively have not brought the changes we need fast enough,” said Van Dyke.
Hospital leaders anticipate it will take about a year for Tyrone Hospital and Tyrone Medical Associates to emerge from bankruptcy.
“We hope it can be accomplished sooner,” said Van Dyke. “We hope this will be the last step down before we start climbing up.”