EVANSTON — Quorum Health Corporation, the company that owns Evanston Regional Hospital and 22 other community hospitals across the nation, announced on Tuesday, April 7, that it had entered into a financial restructuring agreement through Chapter 11 bankruptcy. A press release issued by the company said, in part, “Quorum Health has been transparent about the need to reduce the large amount of debt and the associated high interest rate it inherited when it was formed in 2016. By working with key investors in advance, the company has been able to utilize the rules under Chapter 11 of the U.S. Bankruptcy Code to recapitalize the company.”

Administration at ERH reported the hospital is “unaffected by this restructuring” and will remain open, with no staff lay-offs or furloughs, throughout the approximately two-month process of financial reorganization. Employee salaries, benefits and paid time off will reportedly be unaffected, though staffing may be adjusted related to the coronavirus pandemic, which is a common situation for hospitals throughout the country at this time.

Cheri Willard, ERH CEO, said, “This decision comes at a critical time when all hospitals are facing unprecedented challenges related to the coronavirus pandemic. This is an important step toward long-term financial stability and will ensure that our hospital has the resources and cash flow needed to address the COVID-19 crisis and continue caring for patients and the community.”

Although the move is not directly related to the COVID-19 pandemic and the company has reportedly been working to restructure debt for an extended period of time, it is undoubtedly a critical time for ERH and rural hospitals in general. With the cancellation of elective procedures and people generally abiding by stay-at-home recommendations, healthcare providers, like many other businesses, are experiencing financial strains at a time when the availability of services is of paramount importance. A statement on the Quorum Health website related to the restructuring states, “Our ability to continue meetings the needs of patients and communities we serve is more important than ever.”

In an email response to the Herald, Willard spoke to the impact of the pandemic on ERH, saying, “In reality, the response to COVID-19 has more of an impact on hospital operations with the dramatic shifts in patient utilization and revenue. Our entire team greatly appreciates the support from the community as we rally together to fight this virus.”

During a videoconference work session of the Uinta County Commission, Willard addressed the restructuring and said that, although bankruptcy sounds like a bad thing, “for our facility this is a great thing.” Willard said the financial agreement will allow for vendors and employees to continue to be paid and will result in better cash flow and capital opportunities. She further elaborated via email and said, “The restructuring adds local capital investments for Evanston to tackle potential projects like upgrading radiology equipment and implementing new robotic surgery capabilities for orthopedic surgery. We are proud to be able to offer big city amenities with the personalized care of a community hospital.”

“Nothing really changes due to the restructuring in terms of operation for the hospital,” said Willard.

Throughout the commission work session, Willard and ERH Business Development Director Jessica Kendrick emphasized the many steps the hospital has taken to improve services for area residents and provide quality health care within the local community. Kendrick said ERH has been accredited as a four-star quality rated hospital by CMS (Centers for Medicare and Medicaid Services) and touted the hospital’s partnership with the University of Utah Medical Center. Through the partnership, the hospital is able to offer tele-ICU and tele-stroke services.

In addition, Kendrick said tele-health can be utilized by all hospital and Uinta Medical Group healthcare providers, which she said is a huge benefit during the current pandemic.

Willard also commented on the increased use of tele-health options while sharing her appreciation for local healthcare providers and the community as a whole. “We’ve always been committed to serving our community and I’m so glad that will continue and grow. In addition to providing care within our own four walls, we’re seeing hundreds of patients through telemedicine and we’ll continue to find new ways to meet our community’s needs. I couldn’t be prouder of our dedicated physicians, nurses and other team members, and we are grateful for the community’s loyalty and continued support through this challenging time.”