Laconia, N.H.-based LRGHealthcare's CEO Kevin Donovan warned that if the sale of its two hospitals to Concord (N.H.) Hospital fell through, the facilities could close within two months, according to The New Hampshire Union Leader.
The comments came during a New Hampshire Department of Justice public hearing Feb. 23 that discussed the proposed sale and answered questions from the public.
During the hearing, Mr. Donovan said there was no other way for the hospitals to survive outside of the sale, according to the report.
LRGHealthcare filed for Chapter 11 bankruptcy protection in October 2020. The bankruptcy filing will help the system relieve its debt load of more than $100 million. Mr. Donovan said that filing for bankruptcy was necessary after it became clear its debt would be an impediment to any deal.
"We have known for some time that our current reality is not sustainable for the long term, and minor fixes will not get us where we need to be," Mr. Donovan told the Laconia Daily Sun about the bankruptcy filing. "Even before the significant impact of COVID-19, we were bearing a substantial financial burden."
Concord Hospital made a $30 million bid to purchase LRGHealthcare's assets out of bankruptcy. LRGHealthcare's assets include Lakes Region General Hospital in Laconia, Franklin (N.H) Regional Hospital and a network of ambulatory care networks.
LRGHealthcare and Concord Hospital expect to complete the transaction by the end of this year.