Owners of Hillsboro Community Hospital file for Chapter 11 bankruptcy

HMC/CAH Consolidated Inc., owner and operator of Hillsboro Community Hospital, announced Wednesday that the company has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The move should not affect the operation and services provided by the hospitals it owns, including HCH, according to a news release from the company.

HMC/CAH plans to reorganize the company?s finances, and believes its system of 12 rural hospitals ?will emerge stronger and more competitive in providing high quality healthcare to rural communities.?

The decision to financially restructure the company through Chapter 11 was in general driven by the challenges of the current economic downturn, and more specifically by the failure of HMC/CAH?s key lender to fund the four replacement hospital projects, inclduing Hills?boro?s, which were scheduled to begin construction this year.

HMC/CAH stated the reorganization ultimately will ?permit the company to reposition itself for long-term success, and the ultimate completion of its business plan.?

Larry Arthur, president of HMC/CAH, said, ?The strategic decision to pursue a financial restructuring through Chapter 11 will now allow us to protect our financial position and to ensure that the company will remain a viable health-care resources in the communities where we operate.

?HMC/CAH has not waivered, and will not waiver, from its ultimate goal to rebuild the rural hospital infrastructure of its hospitals.?

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