The Dickinson County Healthcare System may file for bankruptcy.
The hospital’s legal counsel has recommended that the hospital file for Chapter 11 bankruptcy after acquisition deals with both Bellin Health and U-P Health System fell through this year.
In a statement, counsel Michael Celello said that the hospital has cut costs by five million dollars, but that hasn’t been enough because fewer people are using the hospital. The Dickinson County Health System Board will have a special meeting Tuesday to decide the next move. That meeting starts at noon Central time.
The statement:
This morning at a special session of The Dickinson County Commissioners Meeting held at Dickinson Memorial Hospital, the Dickinson County Healthcare System (DCHS) Hospital Board of Trustees and the County Commissioners met in a joint / public meeting to discuss the future options for DCHS.
During the meeting DCHS legal counsel, Michael, P. Celello, announced that at tomorrow’s Hospital Board of Trustees Meeting, he will make a recommendation to the board for permission to begin the legal pursuit of a Business Reorganization through a voluntary Chapter 11 Bankruptcy. Mr. Celello stated, “Attempts at being acquired have fallen short and it is my opinion that a Business Reorganization is in the best of the interest of the financial future of the hospital. Reorganization also offers the greatest chance for DCHS to maintain services and the staffing required to provide said services.”
Despite DCHS’s attempts to reduce expenses, which so far in 2018 have resulted in nearly $5 million savings compared to the same period in 2017, the financial struggles continue due to unprecedented decreases in patient utilization of services.
The Hospital Board of Trustees will hear Mr. Celello’s recommendation at tomorrow’s Board meeting and the Board will deliberate the issue. Hospital Board President, Bill Edberg explained, “it is unfortunate that it has come to this, but the Hospital Board will continue to make the difficult decisions necessary to preserve the provision of quality care in this community.”
The Dickinson County Healthcare System Hospital Board Meeting is scheduled, Tuesday, September 25, 2018, 12:00 pm in Conference room E located on the lower level of Dickinson Memorial Hospital.
