Penobscot Valley Hospital, a 25-bed critical access hospital in Lincoln, Maine, filed for Chapter 11 bankruptcy Jan. 29.
The bankruptcy process will enable the hospital to restructure its debt.
"We have made tremendous strides over the last three years in bringing our operational costs in line with revenue," Hospital CEO Crystal Landry said in a press release. "Legacy debt is the issue here, and Chapter 11 allows us to restructure that debt so we can keep our doors open and ensure that our community continues to have a hospital close to home."
The hospital will remain open during the bankruptcy process and no layoffs are planned.
"Patient health remains our top priority and we will continue to provide excellent healthcare to our community during the bankruptcy process," Ms. Landry said.
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