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Adair Co. Hospital Corporation to file for Chapter 9 reorganization

'We are not closing. We are open for business. We have a plan.' Chairman Craig Pyles tells meeting. 'And we have $20 Million in debt and this is part of our plan to deal with that.' Announcement comes at session which hears, also, that hospital has just received news that in patient feedback has earned it the rating of No. 1 hospital in the nation for patient satisfaction for cleanliness. Mr. Pyles said. 'Patients can be assured they'll be taken care.' Hospital, board given words of confidence by Judge Ann Melton and three magistrates present for the historic vote. Mood of confidence pervades meeting after the vote. Other options had been studied, but this one is the best course, given the situation, Mr. Pyles says. He pleads for continued community support. Hospital Attorney Elmer George says hospital's survival is essential for the welfare of the community

By Ed Waggener

In a move which had been expected for some time, the Board of Trustees voted to file papers on Wednesday, July 31, 2013, in Kentucky Western District Bankruptcy, Bowling Green, KY, seeking to reorganize under Chapter 9 of the U.S. Bankruptcy Code, a protection available only to government entities. The action will proceed following unanimous votes by the board, all of whom where present: Chairman Craig Pyles, Vice Chairman Neal Gold, Secretary Richard Grant, Treasurer Bruce White, and member Brad Keltner, at the boards regular Tuesday, July 30, 2013 meeting.

Top state bankruptcy attorneys handling hospital case

The filing will be handled by Attorney James E. McGhee and Attorney David M. Kantor of the Louisville Law Firm Seller Waterman, LLC. Mr. Kantor is considered by many to be the top bankruptcy attorney in the state, and is the attorney Mr. George said is his top choice when reorganization is the top option.

The move was necessary, Attorney Elmer George told the audience at tonight's regular meeting of the Adair Hospital District Board of Trustees, -even though the hospital's current operations are virtually break-even - because of some $20 million in all obligations and pressure from creditors and litigants, which will be stayed for now.

Hospital Board Chairman Craig Pyles emphasized that the filing will have no affect on patient care or day-to-day operations of the hospital. The hospital will have sufficient operating funds to make payroll and anticipates no problems with meeting all current ongoing payments.

Attorney George and Chairman Pyles said that for the immediate coming days, cashflow should improve.

Litigation with Spectrum Partners, the Tennessee firm and a lawsuit by the Farmers National Bank, Danville, KY, and fellow banks in a consortium, is seeking to have a court imposed tax to pay off a large loan will be stayed, Mr. George said. The lawsuits would be managed by the Federal Bankruptcy judge, he said.

The Chapter 9 situation is a rare one, for a hospital, and the first for any hospital in Kentucky, Attorney McGhee said. Only 659 cases for hospitals could be found, nationwide, in all of history of Chapter 9, Attorney McGhee said. Chapter 9 is for governmental entities what Chapter 11 is for corporations. Orange County, California and most recently, the City of Detroit, filed for reorganization under Chapter 9. Mr. George noted that while Detroit faces $20 billion in debt, for the hospital, it's only a tiny fraction of that amount, $20 million.

In other business:

Diana Burton is new Business Office manager

Volunteer Administrator Neal Gold introduced Diane Burton as the new Business Office manager. "She's shaking things up, making things happen, already," he said.

Working with search firm for family doctor, nurse practitioner

Mr. Gold said the hospital has high hopes for a family doctor and a nurse practitioner to add to the Westlake staff. The search firm is working on the contingency fee basis, with fees due only if the practioners actually sign with Westlake.

Behavioral Unit temporarily closed; reopening expected in a few weeks

Mr. Gold said that since the withdrawal of Psychiatric Resources, the Behavioral Unit has been shut down in July, but is expected to be staffed and reopened in a couple of weeks.

Edmonton Primary Care is leasing newer quarters next to Life Skills

Mr. Gold said that Edmonton Primary Care is moving to newer, nicer quarters in Edmonton, next to Lifeskills. He said the proximity to Lifeskills will likely result in EPC being able to provide more of the medical services needed by Lifeskills' behavioral patients, and hopefully, Lifeskills will use the Westlake Behavioral unit more.

Financial report by CFO David Hayes

Chief Financial Officer David Hayes said that complete financial reports were delayed because of computer problems, but reported that preliminary figures show Westlake's Clinics to be doing quite well.

Adair Fiscal Court Members praise the work of the trustees; back reorganization

Adair County Judge Ann Melton, and Magistrates Harold Burton (District 1), Sammy Baker (District 3), and Billy Dean Coffey (District 5) were all present and expressed gratitude for the turn-around made by the Adair County Hospital Board of Trustees, and gave their support to the reorganization filing.

Neal Gold announces full-fledged Health Fair

A full-featured Health Fair, with vendor booths and a blood draws will be October 19, 2013, Volunteer Chairman Neal Gold told the audience. Blood draws will begin October 1, and a full schedule of events will be circulated in the media, he said.

This story was posted on 2013-07-30 21:05:08
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Adair County Hospital District trustees at historic meeting

2013-07-30 - Westlake Regional Hospital, 901 Westlake Drive, Columbia, KY - Photo by Ed Waggener.
The Adair County Hospital District Board of Trustees
from left, Bruce White, Richard Grant, Brad Keltner, Chairman Craig Pyles, and Neal Gold voted unanimously to authorize the filing of Chapter 9 reorganization papers in Kentucky Western U.S. District Bankruptcy Court, Bowling Green, KY. Attorney Elmer George said that the papers will be filed by Bankruptcy Attorneys David Kantor and James E. McGhee tomorrow, July 31, 2013. At right is Administrative Assistant Cheryl Wall.

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Craig Pyles reminds audience that Chapter 9 just part of a plan

2013-07-31 - Westlake Regional Hospital, 901 Westlake Drive, Columbia, KY - Photo by Ed Waggener.
As the Adair County Hospital Board of Trustees
authorized the filing for protection while reorganizing under Chapter 9, Board Chairman Craig Pyles reminded the media and the audience that the step was taken after every other option was taken to work with creditors as the hospital recovers. "We do have a plan," he said, adding that it's just the best option while working with creditors. He and Attorney Elmer George emphasized that the problems Westlake is having are inherited ones, that the hospital is now stabilized financially except for long term debt. Mr. Pyles said that patients will continue to be seen. Doctors and dedicated medical staff will be there. That Chapter 9 is only temporary and that a bright future is in store.

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Elmer George: Jobs are important, but people need the hospital

2013-07-31 - Westlake Regional Hospital, 901 Westlake Drive, Columbia, KY - Photo by Ed Waggener. Attorney Elmer George standing told those a the Adair County Hospital District Board of Trustees meeting Tuesday night, July 30, 2013, that the filing for protection under Chapter 9 was essential to work out a payment schedule which the hospital can live with. "Jobs are important," he said, but added that the bigger reason is that folks need a local hospital. At right is David Cantor, who was scheduled to file reorganization papers in Bowling Green, KY, on Wednesday, July 31, 2013.
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Magistrates support present trustees, Chapter 9 protection

2013-08-01 - Westlake Regional Hospital, 901 Westlake Drive, Columbia, KY - Photo by Ed Waggener. Three Magistrates from Adair Fiscal Court above, from left Billy Dean Coffey (District 5), Sammy Baker (3), and Harold Burton (Big 1) listen as Attorney Elmer George gave the reasons for the decision to file Chapter 9 reorganization papers in Bowling Green, KY Federal Court. All three voiced support for the action and all three praised the work of the present Board of Trustees and the results they are achieving in turning around the fortunes of the facility. Adair County Judge Ann Melton was also in attendance, and voiced support for the plan and praised the work of the trustees, all of whom she appointed and Fiscal Court approved: Chairman Craig Pyles, Vice Chair and Volunteer Administrator Neal Gold; Secretary Richard Grant, Treasurer Bruce White, and member Brad Keltner. Clicking Readmore accesses a full CM report of the meeting, posted immediately following the Tuesday, July 30, 2013, regular session
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