LINCOLN, Maine — Penobscot Valley Hospital filed for Chapter 11 bankruptcy protection Tuesday, Jan. 29.
The hospital says it will remain open and operate as normal as it works through the bankruptcy process, which should take 12 to 18 months.
“The hospital is not closing. Patient health remains our top priority and we will continue to provide excellent healthcare to our community during the bankruptcy process,” said Crystal Landry, CEO of Penobscot Valley Hospital.
The closure of Lincoln Paper and Tissue and high rates of unemployment in the area are cited by hospital officials as an issue leading to their bankruptcy filing, along with a decrease in-patient admissions by 65 percent. Officials say the lack of Medicaid expansion and cuts to reimbursements have also impacted the hospital.
Hospital officials say they think the bankruptcy will help them emerge in a "stronger financial position."