The interim CEO of Springfield (Vt.) Hospital said it will be "virtually impossible" for the hospital to survive without merging with other hospitals in the area, according to VTDigger.
Springfield Hospital entered Chapter 11 bankruptcy protection in June to restructure its nearly $20 million in debt. During an Aug. 28 budget presentation to the Green Mountain Care Board, interim CEO Michael Halstead said the hospital needs to finalize a merger because its financial structure is unsustainable. Springfield Hospital is expected to post a $6.5 million loss this fiscal year, according to the report.
Springfield Hospital is in merger talks with two other rural hospitals: Mt. Ascutney Hospital and Health Center in Windsor, Vt., and Valley Regional Hospital in Claremont, N.H. Both hospitals are already affiliated with Lebanon, N.H.-based Dartmouth Hitchcock Medical Center.
The three hospitals would significantly reduce administrative costs by merging, which would help Springfield Hospital stay afloat, according to VTDigger.
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