Randolph Health, a single-hospital system based in Asheboro, N.C., announced March 6 that it has filed for Chapter 11 bankruptcy.
Randolph Health leaders have taken several steps in recent years to improve the health system's financial picture, and they've made progress toward that goal. The health system boosted its operating margin in fiscal year 2019 and continued to see improvements in the first quarter of fiscal 2020. Entering Chapter 11 bankruptcy will allow Randolph Health to restructure its debt, which officials said is necessary to ensure the health system continues to provide care for many more years.
"Restructuring our debt is something that we have been talking about for some time now, and this filing is simply the next step in a planned process to ensure the future of health care for the people of Randolph County," Randolph Health CEO Angela Orth said in a news release. "Over the past three years, we have undertaken significant efforts to strengthen financial operations, identify a long-term path forward and ultimately protect Randolph County's health care future."
Randolph Health will operate as normal throughout the bankruptcy process, which is expected to be completed this year.
"Patients will have the same access to their health care provider and services with no interruption of care," states the news release. "Randolph Health will continue to pay salaries and fees to physicians and employees, purchase supplies and equipment and ensure access to quality health care during this process."
Randolph Health comprises a 145-bed hospital, a network of physician offices, outpatient rehabilitation centers, homecare services and a cancer center.