Bankruptcy Not an Option For Saving The Hospital

Bankruptcy is not an option for St. Mark’s Medical Center, according to hospital CEO Mark Kimball.

“The hospital’s current debt does not afford St. Mark’s reorganization protection under current bankruptcy laws,” Kimball said in a statement to the Record this week.

Kimball said the St. Mark’s Board of Directors considered bankruptcy but decided that transitioning to a Rural Emergency Hospital (REH) designation was the best option to keep the hospital open.

“The St. Mark’s Board of Directors is and has been focused on preserving access to quality health care for the community and as many jobs as possible,” Kimball said. “The Board, along with Legal counsel, pursued and evaluated multiple options to support this mission – including both Chapter 11 and Chapter 7 Bankruptcy – before determining that transitioning to the Rural Emergency Hospital (REH) designation was the best path to also allow continued work toward a longer term solution that would stabilize the hospital and continue to provide needed healthcare services to Fayette and Lee Counties.”