LRGHealthcare, a two-hospital system in Laconia, N.H., filed for Chapter 11 bankruptcy protection Oct. 19, according to the Laconia Daily Sun.
The bankruptcy filing will help the system relieve its debt load of more than $100 million.
"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," LRGHealthcare President and CEO Kevin Donovan told the Laconia Daily Sun. "Even before the significant impact of COVID-19, we were bearing a substantial financial burden."
Mr. Donovan said the organization will continue to provide quality care to patients during the bankruptcy process and that its 1,400 member team won't face layoffs or benefit reductions.
LRGHealthcare tried for more than two years to find a partner to help stabilize its finances. However, Mr. Donovan said that filing for bankruptcy was necessary after it became clear its debt would be an impediment to any deal.
Another New Hampshire hospital, Concord (N.H.) Hospital, has made an initial bid of $30 million to purchase LRGHealthcare's assets, which include two hospitals and a network of ambulatory care centers, according to the Laconia Daily Sun.