Iron County Medical Center (ICMC) is making final preparations to conclude the Chapter 9 Bankruptcy process following a hearing held at the federal courthouse in Cape Girardeau last week.
Having come to a mutually beneficial agreement between ICMC and the United States Department of Agriculture (USDA) and having Medicare and Mo HealthNet in agreement as well, the judge was able to approve the Disclosure Statement on Jan. 6.
“We are happy to share that a collaborative effort with the USDA and all involved will make it possible for our facility to establish financial stability and sustainability as we move into a new decade of providing quality patient care to residents of our surrounding communities,” said ICMC Chief Executive Officer Joshua Gilmore. “We are especially grateful to our federal and state partners, including the USDA, Medicare, and MO HealthNet for their input and extraordinary support throughout this process.”
Iron County Medical Center filed for Chapter 9 Bankruptcy protection on Feb. 21, 2018. Court hearings and mediation sessions have been ongoing since that time.
According to Gilmore, while final judicial approval of the plan is set for March 2, their agreement with the USDA includes several key wins for the Iron County Medical Center and the many patients of their region.
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These include the USDA’s Special Revenue Bond being extended out to 40 years at a favorable interest rate [not to exceed 3.5%]; the approval for ICMC to create a capital reserve allowing them to replace aging equipment, the ability to relocate their Rural Health Clinic to their main campus; and even an allowance for ICMC to maintain 36 days cash reserves which is vital to the sustainability of the organization.
“These are absolutely monumental steps that will provide us with the components we need to be successful going forward,” Gilmore explained. “It’s been a long and arduous process for everyone involved and definitely a learning experience.
“I am very proud of our ICMC team for their fortitude, support and continuing commitment to faithfully serve every patient and patron that comes through our doors. All of us are now able to look forward to a sustainable future.”
The final court date for plan approval is scheduled for March 2 at the Rush H. Limbaugh Sr. Federal Building in Cape Girardeau.