To LRGH Members:
We have important news to share today regarding the future of LRGHealthcare.
LRGHealthcare is beginning the legal and regulatory process of filing for Chapter 11 bankruptcy. We are also announcing that we have 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.
We have known for some time that our financial reality is not sustainable for the long term, and our Board and leadership team have been exploring strategic options to protect LRGHealthcare’s long-term ability to serve our communities. Through this work, it has become clear that we must first move through the procedural step of bankruptcy. Taking this step will ensure a bright future for our hospitals and medical practices and preserve access to excellent care in the Lakes and Three Rivers Region.
We are excited that Concord Hospital has submitted a bid to purchase our assets and we look forward to the potential opportunity to build upon our long-standing, successful collaboration. However, several steps remain before an acquisition is finalized. The United States Bankruptcy Court will conduct an auction and sale process, during which other potential buyers will have an opportunity to submit offers to acquire LRGHealthcare’s assets. Any transaction will require further approval from regulatory agencies. We expect that this process will continue through the calendar year and possibly into 2021.
Importantly, nothing changes today and our doors remain open. During the restructuring process, there will be no changes to our membership body. This legal and regulatory process will play out in the courts and not in the walls of our hospitals. Our team of outstanding doctors, nurses and support staff will remain focused on providing the health care services our community needs right now.
We will host a virtual member input session on Wednesday, October 28th at 5:30 p.m. to discuss this important step in more detail. You can RSVP for this meeting here.
We look forward to pursuing this path that will preserve our 125+ year legacy by maintaining local access to needed health care services. Thank you for all that you do for LRGHealthcare and the people we serve.
Kevin W. Donovan
President and CEO, LRGHealthcare