Cottage Hospital parent company to undergo financial restructuring

It was announced Tuesday that Quorum Health Corp. that owns Cottage Hospital as well as 22 other hospitals in communities across the nation has undergone financial restructuring.

During this uncertain time, according to a release, the agreement will protect its employees and ensure its hospitals can continue to care for patients. According to the release, Galesburg Cottage Hospital will not be affected by the restructuring and will remain open and available. Hospital employees will continue to receive their wages and benefits for the work they perform, and patients and families should experience the same care that exists today.

Bob Moore, CEO of Galesburg Cottage Hospital said: “This decision comes at a critical time when all hospitals are facing unprecedented challenges related to the coronavirus pandemic.”

He added that, “This is an important step toward long-term financial stability and will ensure that our hospital has the resources and cash flow needed to address the COVID-19 crisis and continue caring for patients and the community.”

By working with key investors in advance, Quorum has been able to utilize the rules under Chapter 11 of the U.S. Bankruptcy Code to recapitalize the company.

The company has been transparent about the need to reduce the large amount of debt and the associated high interest rate it inherited when it was formed in 2016.

Any additional information can be found at THIS LINK.  The news came on the same day that the parent of OSF St. Mary Medical Center announced pay cuts and employee furloughs.

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