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Bucktail Medical Center out of bankruptcy

CEO lauds community’s support, dedication, determination

KEVIN RAUCH/THE EXPRESS BUCKTAIL MEDICAL CENTER, 1001 PINE ST., SOUTH RENOVO

RENOVO — It has been a long, arduous, and expensive process.

But after nearly two and one-half years, Bucktail Medical Center (BMC) officially emerged from Chapter 11 Reorganization on March 26.

This is an important milestone for the medical center, which has been able to reorganize and restructure the facility’s finances. This, in essence, gives the medical center a fresh start without the financial burdens of the past.

Important aspects of the plan of reorganization included negotiated deals with current vendors, a new financing package, and a plan for the future.

A few facts to recognize:

r No jobs were lost through the reorganization.

r All wages have been paid and no benefits were lost.

r No debtor-in-possession funding or additional loans were necessary to work through the process.

r All bills, including much of the cost of Chapter 11 Reorganization, were paid with operating income.

r All vendors were treated equally.

In the summer of 2014, the medical center was on the verge of closing its doors. Three and one-half years later, the facility is still there, serving the medical needs of the community.

This was no small task.

“Nearly nine out of 10 organizations that enter Chapter 11 are unsuccessful and close. However, the employees at nine out of 10 organizations don’t have the dedication of staff at Bucktail Medical Center, ” said Tim Reeves, CEO and administrator of Bucktail.

“Nine out of 10 organizations don’t have the community support we have had. Nine out of 10 organizations just don’t have the determination this community has,” he said.

Reeves said staff at the medical center deserve a tremendous amount of credit.

“Not only have they weathered this storm, but the level of care provided to our patients and residents has improved as evidenced through our state surveys. As we complete the Chapter 11 process, we will attend to union and non-union staff alike. I would like to thank each of you for the care you provide every day and the role you have played in our success,” he said.

However, he issued a note of caution.

“There is not a pot of gold at the end of Chapter 11. Emerging from Chapter 11 does not alleviate the financial challenges the medical center faces; rather, it provides an opportunity for us to demonstrate that the medical facility can be self-sufficient and viable in spite of these challenges,” he said.

The process took considerably longer than anticipated because of several delays, Reeves said. “It has been a more expensive process than we had hoped; court fees, ombudsman fees, and attorney fees all escalate rapidly.”

Without direct oversight from the courts, the medical center is now able and ready to move forward with programs to better serve western Clinton County and to generate new revenue streams, Reeves said.

“The healthcare environment in central Pennsylvania is rapidly changing, but the need and the purpose of BMC remain the same — to provide the best possible care to the members of the community. That need might be to diagnose and treat, or to stabilize and transport to another medical facility for advanced care. It might be a clean, comfortable and caring home for aging family and friends. It might be a wellness visit to the clinic or a response from our ambulance,” Reeves said.

There has been an overwhelming amount of support from the community, he said.

“It is quite clear the community recognizes the importance of having the medical center in their community. As the medical center moves forward, the community’s dedication, support, and determination are more important than ever,” Reeves said.

“BMC continues to work hard so the medical center is here when you need it most,” he said.

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