Morehead Hospital Announces Chapter 11 Bankruptcy Protection Filing

(Eden, NC) – Morehead Memorial Hospital announced the Board of Trustees at Morehead Memorial Hospital filed on Monday, June 10 for protection under Chapter 11 of the U.S. Bankruptcy Code, in a press release issued on July 11, 2017.

FROM: Eugene Russell, Chairman, Board of Trustees, Morehead Memorial Hospital

DATE:  JULY 11, 2017

CONTACT:       Myla Barnhardt, Director of Marketing & Public Relations                     

                         

FOR IMMEDIATE RELEASE

 EDEN—The past decade has been a difficult one for the health care industry, especially for small, community hospitals. Due to ongoing financial pressures, the Board of Trustees at Morehead Memorial Hospital filed on Monday, June 10 for protection under Chapter 11 of the U.S. Bankruptcy Code.

This move will allow the hospital to restructure its debt in order to reach financial stability and ensure its long-term success. The reorganization strengthens Morehead’s potential to find a strategic partner.

Morehead will continue to operate and patients should not notice a change during the petition process.

“Reorganization will allow Morehead Hospital the opportunity to align its operations strategically to meet the health care needs of our community,” said Eugene Russell, Chairman of Morehead’s Board of Trustees. During Chapter 11, Morehead will continue to maintain the high level of excellence that has driven its ability to provide trusted care in the community for nearly 60 years.

The hospital’s employees, which number around 700, were notified early July 11, 2017 about the board’s action. They were assured that Morehead’s doors will stay open and their jobs will continue. No lay-offs are expected due to the filing, and Morehead’s leadership team plans to remain in place.

About Morehead:

• Morehead Memorial Hospital opened in 1960. Its construction was funded by donations from local individuals, businesses and industries, as well as a generous gift from John Motley Morehead III, for whom the hospital is named. Morehead has roots in Rockingham County’s first hospital, Leaksville Hospital, established in 1924 in what is now Eden.

• The nonprofit hospital entered into a management agreement with Novant Health in 2014. Prior to that it was managed by Quorum Health Resources.

 

Pertinent Facts:

• Morehead is licensed for 108 acute care beds

• It operates Morehead Nursing Center, a 121-bed, four-star, skilled-care facility

• Employees: 657, plus more than 80 contract employees

• Owns and operates 8 practices and has the only Birthing Center in Rockingham County. In 2016, 537 babies were born at Morehead.

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About Chapter 11 in general. When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court forprotection under either Chapter 7 or Chapter 11.

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• RELATED POST: “Morehead Is Not Closing”: Morehead President / CEO To Eden City Council

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