Local hospital operations are unaffected
GALESBURG, Ill. (April 7, 2020) – Quorum Health Corporation, which owns Galesburg Cottage Hospital and 22 other community hospitals across the country, today announced it has entered into a financial restructuring agreement that will protect its employees and ensure its hospitals can continue to care for patients during this uncertain time.
Galesburg Cottage Hospital is unaffected by this restructuring and remains open and available to provide care to patients. Hospital employees will continue to receive their wages and benefits for the work they perform, and patients and families should experience the same care that exists today.
“This decision comes at a critical time when all hospitals are facing unprecedented challenges related to the coronavirus pandemic,” said Bob Moore, chief executive officer of Galesburg Cottage Hospital. “This is an important step toward long-term financial stability and will ensure that our hospital has the resources and cash flow needed to address the COVID-19 crisis and continue caring for patients and the community.”
Quorum Health has been transparent about the need to reduce the large amount of debt and the associated high interest rate it inherited when it was formed in 2016. By working with key investors in advance, the company has been able to utilize the rules under Chapter 11 of the U.S. Bankruptcy Code to recapitalize the company.
The financial reorganization is expected to be complete within two months and will better position the hospital for future growth. Under the terms of the plan, which is subject to Court approval, all suppliers – including local businesses providing goods and services – will continue to be paid in full.
“We’ve always been committed to serving our community and I’m so glad that will continue and grow,” said Moore. “In addition to providing care within our own four walls, we’re seeing hundreds of patients though telemedicine and we’ll continue to find new ways to meet our community’s needs. I couldn’t be prouder of our dedicated physicians, nurses and other team members and we are grateful for the community’s loyalty and continued support through this challenging time.”
Quorum Health has created a dedicated website – www.QuorumForward.com – to provide additional information and answers to questions about the restructuring.
About Galesburg Cottage Hospital
Celebrating over 125 years of serving Western Illinois, Galesburg Cottage Hospital is a 143-bed facility that provides complete inpatient, outpatient and emergency care with an award-winning wound healing center complete with two hyperbaric healing chambers. Galesburg Cottage Hospital is accredited by The Joint Commission (TJC), the Society of Cardiovascular Patient Care as a Chest Pain Center, TJC Primary Stroke Center and its Emergency Department is approved for Pediatrics by the State of Illinois. For more information, visit CottageHospital.com.
