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Magee, MS (2016-04-01) Pioneer Health Services, the parent corporation of Pioneer Community of Scott, has reportedly filed for Chapter 11 Bankruptcy protection. While the company is seeking protection from its creditors, it is hoping to restructure and continue doing business.
In a press release on Thursday, Pioneer Health Services, Inc., headquartered in Magee Mississippi announced it had filed for Chapter 11 Bankruptcy protection to restructure the organization in order to stabilize operations and ensure long-term viability. The filing reportedly affected the parent corporation, along with six of its hospital and its physical therapy company. The specific companies/entities involved include: Pioneer Health Services Inc., Pioneer Community Hospital Scott, Pioneer Community Hospital Stokes, Pioneer Community Hospital Patrick, Pioneer Community Hospital Aberdeen, and Medicomp, Inc.
According to the company, the filing was necessitated by a significant change in the healthcare environment over the past few years that led to a financial strain throughout the organization. Pioneer specifically cited decreases in reimbursement through high deductible plans, 2% sequestration, requirements to invest in an electronic health records system, denials for appropriate hospital stays by insurance companies, and delays in payment by those same insurance companies among the reasons for the filing.
Locally, Pioneer Community Hospital of Scott will remain open; however, services will be reduced. The hospital emergency department will continue to receive and treat patients; however, the hospital’s med-surg department (patient care floor) has stopped receiving patients and will close on Sunday. Currently, the hospital intends to continue to provide outpatient services, including outpatient surgical procedures and radiology.
“Our ultimate goal is to stabilize the entire organization for a long term successful future for the communities and patients we serve,” Joe McNulty, CEO of Pioneer Health Services said. “With the support of our employees and community during this time of transition, we will be successful in coming out of this trying time for a very bright future,” he added.
Pioneer Health Services negotiated the acquisition of the former Scott County Hospital in 2013, ultimately reopening the facility on December 1st of that year. Prior to the acquisition, the hospital had been closed for 18 months.
- Chapter 11 Library.com gave the following information: Debtor Name: Pioneer Health Services, Inc.
- Year Filed: 2016
- Jurisdiction: United States Bankruptcy Court / Southern District of Mississippi
- Asset Size: 10,000,000 to 100,000,000
- Case Number: 16-01119
- Industry: Health
Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. (information from the United States Courts website)
Pioneer Health Services files for bankruptcy in hopes of long-term viability
Written by Ayla Ellison | April 02, 2016
Magee, Miss.-based Pioneer Health Services, which owns hospitals in Georgia, North Carolina, Mississippi, Tennessee and Virginia, has filed for Chapter 11 bankruptcy, according to The Stokes News.
Officials from Pioneer Hospital of Stokes in Danbury, N.C., hope the bankruptcy process, which could take up to two years, will stabilize operations.
“It will allow us to keep the vendors we have for our supply base and pay our creditors over time,” Pam Tillman, the hospital’s assistant CEO, said in a memo to staff, according to the report. “The ultimate goal is to stabilize the entire organization for a long term successful future for the communities and patients we serve.”
Ms. Tillman reassured hospital staff they would continue to be paid during the restructuring process.
Delays in payment by insurance companies, increased use of high deductible health plans and the need to invest in an EHR system were some factors that led to the bankruptcy filing.
