Quorum Health Corporation, which owns Mesa View Regional Hospital and 22 other community hospitals across the country, announced Friday, April 3, that it was entering Chapter 11 bankruptcy.
Today, Tuesday, April 7 the company 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.
A press release issued today by Quorum and Mesa View officials said, “Mesa View Regional 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 Ned Hill, chief executive officer of Mesa View Regional 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.”
The press release continues, “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 Hill. “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.
For more information see this Mesquite Citizen Journal article: https://mesquitecitizenjournal.com/mesa-view-parent-company-preparing-for-bankruptcy/
Erik Chapman says
It’s not surprising that Mesa View’s parent company is filing for bankruptcy. While they have some awesome healthcare workers locally, it’s not the best option for healthcare. They literally lose hundreds of patients who choose to travel to St. George for treatment and it is also a much cheaper option. I am not sure how much of a profitable asset Mesa View is to the parent company Quorum Healthcare, but Mesa View loses a lot of business to IHC. Anyhow, Mesa View isn’t doing much to compete against IHC. A look at their chargemaster sheet shows that IHC is much cheaper. When they closed their labor and delivery Mesa View claimed there was no demand. However, everyone I knew was choosing to drive to St. George to have a baby, so there was a demand, just not for Mesa View.
It would be my hope in bankruptcy they sell off Mesa View to IHC or Banner Health as they are medical nonprofits and offer cheaper, better healthcare options. If anything, if Mesa View wants to be competitive, then they should offer cheaper elective surgeries and attract St. George residents to Mesquite, not the other way around. It’s just sad that they could do so much better, but they aren’t putting themselves in a position to compete with other options and residents are stuck paying a higher price if they choose the local option.