Court approves Springfield Hospital, network’s bankruptcy plan

  • Springfield Hospital, one of the Vermont town's largest employers, sits on a hill overlooking the town Friday, March 29, 2019. (Valley News - James M. Patterson) Copyright Valley News. May not be reprinted or used online without permission. Send requests to James M. Patterson

Staff Report
Published: 12/10/2020 9:49:53 PM
Modified: 12/10/2020 9:49:42 PM

SPRINGFIELD, Vt. — The U.S. Bankruptcy Court for the District of Vermont in Burlington confirmed the Chapter 11 reorganization plans of Springfield Medical Care Systems and Springfield Hospital, allowing the two related organizations to exit bankruptcy, according to a news release from the hospital.

Bankruptcy Court Judge Colleen A. Brown confirmed the exit plans, which hinge in large part on exit funding from the state of Vermont, in hearings on Thursday, according to court dockets.

The confirmation of the plans is the final step in the reorganization process the two related entities began in June 2019 when they faced a total of roughly $20 million in debt.

As a result of the restructuring, the two organizations — the hospital and the health care system’s outpatient clinics — will have separate boards of directors, but will continue to work together to provide care to patients, according to Thursday’s news release.

SMCS clinics in Charlestown and the Vermont towns of Springfield, Bellows Falls, Ludlow and Londonderry will continue to provide primary care, the release said. SMCS also will continue to provide vision and dental care. For its part, the hospital is expected to continue to provide services such as emergency care, specialty care, surgery, inpatient care and outpatient testing.

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