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BREAKING NEWS -- Hospital files for reorganization

Fayette Regional Health System hospital from Virginia Avenue.

Release from Fayette Regional Health System on Oct. 11, 2018 -- -

Like so many rural hospitals that have been fortunate to survive in the current health care landscape, Fayette Regional Health System still faces unfunded care mandates, government funding cuts and other extreme challenges. Due to these challenges, FRHS officials announced that they have filed for protection under Chapter 11 of the U.S. Bankruptcy code effective Wednesday, October 10. This action was voluntary, and approved by the Board of Trustees.

After exhausting other possibilities, it was clear that Fayette Regional could not continue to operate under mounting debt and tightening financial resources. Fayette Regional will now be able to restructure its debt in an effort to obtain financial stability while still maintaining its high level of patient care. As part of the restructuring, Fayette Regional recently announced that they would be closing their obstetric service line, and they are working with vendors to hold any other disruption of service to a minimum during the petition process.

“This is a reorganization process, we’re not closing the doors,” said Randy White, Chief Executive Officer. “Reorganization will allow us the ability to align our operations under current health care industry to meet the needs of the community.”

Fayette Regional officials stated that they will continue to work with their primary lender through the process to identify areas in which they can improve efficiency, productivity and possible partner opportunities in order to better serve the needs of the community.

“I want to emphasize that this is the crucial first step toward strengthening Fayette Regional,” added White.

FROM Oct. 10, 2018

Staff and patients have been notified the obstetric care services at Fayette Regional Health System will close at the end of the business day Friday, Oct. 19.

The closure comes at a time when rumors about the hospital’s future have been spreading in the community. The decision was announced to hospital staff last Friday.

CEO Randy White told the Connersville News-Examiner on Oct. 3 that all departments in Fayette Regional’s system are being reviewed. He outlined the cost squeeze the small independent hospital is in with an aging population and reduced reimbursements from Medicare and Medicaid.

In a news release Wednesday, he stated that closing the obstetrics care service is a difficult decision for the hospital to make but is in the best interest of its patients, employees and the community.

The hospital’s gynecology, pediatrics and all other services will remain open and continue to operate as usual.

“Programs which have offered us the ability to provide these services are no longer in place, and the number of deliveries at our hospital has declined over the last several years,” White stated. “This limited demand for services, declining reimbursements and the need to upgrade our labor and delivery department, have made it hard to continue to provide the deliveries in an effective and efficient manner.”

Several nearby hospitals offer full obstetric services, he said. The local hospital is collaborating with those facilities, making every effort to inform patients of their options and helping to ensure a smooth transition for expectant mothers.

The hospital’s obstetrics staff has been in contact with area obstetric offices, hospitals and emergency departments to ensure that women in the county and surrounding counties continue to receive high quality care they deserve, the news release stated. All scheduled and non-emergency deliveries will be transitioned to a hospital of the patient’s choice and the staff will aid in that transition.

Obstetrics and gynecology physicians, Dr. Amy Wynn and Dr. Jonathan Larsen, will remain with the hospital.

Fayette Regional’s human resources department has offered the affected staff the opportunity to fill open positions within the system and will work with them in order to hold to a minimum any personal disruptions.

“After carefully examining realignment options for our current services and efficiencies through cost reduction, we reached the difficult decision to close the hospital’s obstetric services,” White stated. “We will continue to focus on the long-term, sustainable path forward for the hospital as a whole.”