In an effort to restructure their debt, PVH management is working through the bankruptcy process. It's expected to last anywhere from 12 to 18 months, but patients shouldn't worry about the facility closing its doors.
"The hospital will continue to serve patients, provide healthcare services in a very normal operation," said Penobscot Valley Hospital CEO Crystal Landry. "No changes to patient-care services. Our doors remain open."
Landry says they've made operational changes and are on track for a break-even budget in 2019. The decision to file for bankruptcy was partly caused by the closing of Lincoln Paper and Tissue.
"The mill was our largest employer in town," said Landry. "With that, many of our community members lost commercial health insurance...that certainly has had a ripple effect on the organization."
According to Landry in-patient admissions have decreased by 65 percent since 2015 and overall patient volume has suffered a 10 percent loss as well. Despite that, there are no plans to reduce staffing levels.
"We have no plans for layoffs through this process," said Landry. "We've had a number of right sizing efforts that have occurred over the last three years. We feel we're where we need to be from that perspective.
According to the hospital's press release, a lack of medicaid expansion and cuts to reimbursements have also had a negative effect on hospital revenue.
"We expect to emerge from bankruptcy on a much better financial footing so that we can continue to provide services to the Lincoln Lakes region for many years," said Landry.