Vinita, OK Hospital Doing What It Can To Keep Its Doors Open
In a decision to help the Vinita hospital stabilize its shaky financial situation, board members of the Craig General Hospital, in a unanimous vote, chose to seek Chapter 9 bankruptcy protection.
“This will be a necessary step in providing a strong, viable hospital for this county for many years to come,” remarked Tom McGeady, the lawyer for Craig General. McGeady added that the decision was reached by the trustees of the hospital, only after exploring all other tenable options.
Doubts Arise As To When Craig General Will Be Back On Its Feet
“Officials who are working on our case don’t know how long it will take for Craig General Hospital to get out of bankruptcy,” said Steven Chase, the CEO of Craig General, “However, they do think that negotiations with creditors will move swiftly.”
“Filing for legal financial reorganization,” added Chase, “enables Craig General Hospital to continue to meet the health care needs of the communities we serve without interruption while presenting a plan to adjust our debts.”
Craig General Is A Fully Independent Institution
Craig General Hospital is an independent health care facility, and is managed and operated by the Craig County Hospital Authority, which is a public trust. The County owns the machinery and hospital building, and it is currently being rented by the authority.
Unlike many other rural hospitals, Craig General is not owned by a large system of hospitals, nor does it receive any money to run by the government. Craig General has arrangements with other clinics and doctors to provide specialized care for those patients of theirs that are in need of such attention.
Patients Will Still Have A Completely Operational Hospital In Vinita
Following the decision, the CEO was quick to assure all patrons of the medical center that absolutely no changes would be felt in the every day operation of Craig General Hospital.
Additionally, all employees will continue to receive their paychecks in full, and all pertinent health benefits offered to them as workers of Craig General.
This is especially encouraging to the hospital’s employees, as in recent months many staff members were let go. Now, says Chase, there are no current projected layoffs in the plans.
Hospital Blames New Federal Laws And Reduced Compensation
“The government has composed new laws and mandates that forced us to spend large amounts on updating different wards,” noted Chase, “This, in addition to slashes in payments from the government, has it made it nearly impossible for Craig General to exist.”
One example Chase provided, was requirements to remodel the surgery wings, to maintain new regulation codes. He added that at least seven other rural Oklahoma hospitals were required to live up to this demand.
“The remodeling cost us more than $700,000,” according to Hospital General Trustee Tim Williams, “That resulted in over $825,000 of revenue losses during the period of the renovation.”
With the decision to seek bankruptcy, trustees believe that the hospital in Vinita, Oklahoma, has a strong chance to return itself to its past financially stability.