Penobscot Valley Hospital, a 25-bed critical access hospital in Lincoln, Maine, filed for Chapter 11 bankruptcy in January and disclosed it has up to $10 million in debts, according to the Bangor Daily News.
Penobscot Valley Hospital, which is still compiling data for the bankruptcy case, owes between $8 million and $10 million to the 878 creditors listed in bankruptcy documents, according to the report.
Despite its debts, the hospital will continue to operate during the bankruptcy process. A judge recently granted motions allowing the hospital to keep paying workers and bills as it restructures 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 issued Jan. 29. "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."
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