The owner of the I-70 Community Hospital has emerged from Chapter 11 bankruptcy. Click to hear KMZU’s Kristie Cross talk to HMC/CAH Chief Legal Officer Dennis Davis:
Davis explained the terms of the agreement. “Under the bankruptcy plan, HMC needed to raise about $4 million to finance its exit from bankruptcy, “said Davis, “This was done by HMC selling to Rural Community Hospitals of America its home office assets. This includes the office in Kansas City and the business office in Tulsa.”
The plan calls for HMC to remain in control of the facilities. “As we stand today, HMC still owns all of the hospitals including the I-70 location, ” said Davis, “Rural Community Hospitals of America is the manager and the operations of the hospitals will continue just exactly as they have been.”
According to Davis, the company is financially stronger since the reorganization and has significantly reduced their debt.
Rural hospital owner HMC/CAH Consolidated Inc., the owner and operator of I-70
Community Hospital emerged from Chapter 11 bankruptcy on January 17, 2013. HMC/
CAH’s exit from bankruptcy ended its 15 months of intense reorganization and HMC/
CAH emerged stronger financially with all 12 hospitals intact. HMC/CAHs facilities
are located in rural communities across the United States.
The major cornerstone of the reorganization plan was a consensus reached by creditors
who voted for HMC/CAH’s reorganization plan that was ultimately approved by the
bankruptcy court. In addition, HMC/CAH orchestrated the sale of its management
rights to a new company named Rural Community Hospitals of America, LLC that
will operate independent of HMC/CAH.
Larry Arthur, formerly the CEO of HMC/CAH, has now become the CEO of Rural
Community Hospitals of America. Mr. Arthur noted that “HMC/CAH will emerge
from bankruptcy a stronger organization.” Mr. Arthur also noted his appreciation for
the community and for the hospital employees “without their support our emergence
from bankruptcy would not have been possible.”
Mr Arthur also noted that “through the reorganization process, HMC/CAH has
significantly reduced its debt and emerged with a sustainable capital structure. Our
exit from bankruptcy will provide liquidity to meet our working capital and capital
James D. Noble
Director of Lab, Marketing, Technology & Telemedicine