Hillsboro Community Hospital’s parent company, HMC/CAH Consolidated Inc., exited from Chapter 11 bankruptcy after 15 months of reorganization on Jan. 17.
All 12 of the company’s hospitals — located in rural communities — remain in operation following the reorganization. The company filed for bankruptcy protection on Oct. 11, 2011.
“While the hospital staff was very happy to see HMC/CAH emerge from Chapter 11, throughout the past 15 months the attitude of the employees was very positive that HMC would be successful in emerging,” hospital CEO Marion Regier said.
As part of its reorganization, the company sold its management rights to a new company named Rural Community Hospitals of America LLC that will operate independently. Former HMC/CAH CEO Larry Arthur is now the CEO of Rural Community Hospitals of America.
HMC/CAH had planned to build a new hospital on the northeast corner of Hillsboro and even had a groundbreaking ceremony in December 2010. But financing fell through in January 2011, leading to the company’s bankruptcy reorganization.
Neither Arthur nor Senior Vice President of Strategic Planning and Corporate Compliance Trent Skaggs could be reached for comment about whether construction of a new hospital in Hillsboro might be on the horizon again after the company’s reorganization.
Hillsboro Community Hospital has been profitable for several years running, Skaggs said in October 2011. Regier confirmed that was the case again in 2012.
HMC/CAH owns 12 hospitals, all in rural communities.