Today, LRGHealthcare announced that the organization is beginning the legal and regulatory process of filing for Chapter 11 bankruptcy. LRGHealthcare also announced that it has received an offer from Concord Hospital regarding a potential acquisition of the assets of Lakes Region General Hospital, Franklin Regional Hospital, and the hospitals’ ambulatory sites. These announcements come at the end of a more than year-long process by LRGHealthcare to find a solution to maintain access to local health care services and stabilize the system’s financial position.
“We are making this move today so we can ensure a bright future for our hospitals and medical practices in the Lakes and Three Rivers Region. The LRGHealthcare Board has worked diligently to explore all strategic options and determined that taking this step is the right path to preserve access to care in our region for years to come,” said Kevin W. Donovan, LRGHealthcare President and Chief Executive Officer.
In 2018, LRGHealthcare shared that they had begun to explore strategic options to protect the organization’s long-term ability to serve the community amidst financial challenges. The bankruptcy filing and proposed acquisition will preserve the organization’s 125+ year legacy as a vibrant, local health care provider and maintain access to needed local health care services.
“We are excited to have received an offer from Concord Hospital regarding the potential acquisition of our assets,” Donovan said. “For many years, Concord Hospital and LRGHealthcare have had long-standing partnerships supporting health services in the Lakes and Three Rivers Region, and our systems are like-minded in our not-for-profit, charitable missions.”
LRGHealthcare has filed for protection from its creditors in the United States Bankruptcy Court, which will oversee an auction and sale process during which other potential buyers will have an opportunity to submit offers to acquire LRGHealthcare’s assets. The court will issue a Final Order, and any transaction will need to obtain further approval from regulatory agencies, including the New Hampshire Attorney General and the Department of Health and Human Services. In the meantime, LRGHealthcare will continue to operate and provide services as they have in the past.
“We have known for some time that our current reality is not sustainable for the long term, and minor fixes will not get us where we need to be,” said Donovan. “Even before the significant impact of COVID-19, we were bearing a substantial financial burden. The bankruptcy process happens in the courts, not in the walls of our hospitals, and we will continue providing our patients with high-quality health care when and where they need it.”
Leaders from LRGH will host a virtual community forum to provide patients and community members the opportunity to learn more about this important step and answer questions. The virtual forum is scheduled for Thursday, October 29, from 5:30 to 6:15 PM, and interested community members can RSVP via the following link: LRGH.org/community-forum.
For more information about the proposed acquisition and bankruptcy process, visit LRGH.org/our-future.