Bankruptcy is a complicated thing. As board chair of the former LRGHealthcare, now known as HGRL, I have learned more than I care to over the past year. One important thing to note is that when an entity files Chapter 11 with the U.S. Bankruptcy Court, a magnitude of new rules come into play.
Without going into excruciating detail, HGRL is no longer in full control of its own funds. All payments to vendors, both suppliers and professionals, need to be approved by the Bankruptcy Court and various other constituents.
In the case of the ER physicians who were not paid for their services for the month of April, this was the case. LRGHealthcare did not intentionally try to “stiff” anyone. Our main objective throughout this entire process was to keep quality healthcare available for the people of the Lakes Region and Three Rivers areas and preserve hundreds of jobs.
Payment to EM Staff, LLC and the other physician groups have been approved and initiated. I apologize that it has taken so long, but 60 days is not that long to wait for payment from a bankrupt organization and the approval process had started weeks before the recent negative and incomplete reporting.
In fact, the recent reports may have only delayed payments further as the organization was forced to respond to inaccurate reports which did not account for the legal standing of HGRL or the status of these groups versus employees who were employed directly by the hospital. Ultimately, these groups will be paid in full.
I know that not everyone is happy with the way things turned out. Some physicians are angry that their PSAs were not honored by Concord. I understand, but each had other options. Decisions as such were completely out of HGRL’s hands as we were focused on protecting the community at large. Ultimately, there was a public auction process and only one hospital submitted a bid, and that was Concord Hospital.
It’s sad that what should be seen as a great success, in terms of the quickness in which the sale was completed, the continuity of quality care, the preservation of a vast majority of jobs, and preservation of pension fund obligations is being tarnished by a very small population of individuals who failed to appreciate the full circumstances surrounding HGRL’s present status.
Although this success was the result of the work of many, much of the navigation through these difficult waters was managed by Kevin Donovan. Without his leadership and unwavering efforts, it is unlikely that the hospital would have been able to continue its operations. The anger expressed by some individuals is misplaced and it is my opinion that he should be commended for his efforts.
I’m extremely happy with the purchase by Concord. My family has long been a supporter of LRGHealthcare, and I would have been heartbroken to see our hospital close. What we have is the best possible outcome for all of us.
(Cynthia Pike Baron is board chair of HGRL, formerly known as LRGHealthcare.)