Astria Health Files For Bankruptcy Protection
Just before 10 am this morning, Monday, May 6, 2019, Kit's news department received a press release from Dawn R. O’Polka, Chief Marketing and Communications Executive of Astria Health which stated"
"Astria Health and 13 related companies, including Astria Sunnyside Hospital, Astria Toppenish Hospital, and Astria Regional Medical Center filed for Chapter 11 protection under the United State Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Washington, Yakima Division to restructure its finances, give it time to replace its existing corporate billing office company with another company, and enter into a plan of reorganization with its creditors. Astria Health has secured debtor in possession financing to ensure it has sufficient liquidity to maintain patient care and hospital operations during the process....There is no plan to close facilities. Employee jobs and wages will not be impacted."
A Chapter 11 will allows all Astria Health Hospitals and Health Centers to operate as usual to care for patients and the organization wants to stress that quality patient care remains its main focus.
John Gallagher, Astria Health President and Chief Executive Officer says, “As one of the largest healthcare providers and employers in the Yakima Valley, we believe this step was necessary in order to protect the Valley’s hospitals and its local economies.....All three hospitals are key community assets badly needed by patients and local communities and are vital to the health and well-being of the towns and cities located throughout the Valley”.
The organization’s goal is to emerge from Chapter 11 by year end 2019.