Trios Health to emerge from bankruptcy
The Kennewick Public Hospital District announced June 20 that it would emerge from bankruptcy.
The news comes after the U.S. Bankruptcy Court for the Eastern Division of Washington confirmed the hospital district’s Chapter 9 plan for adjustment of debts.
The hospital district had more than 3,000 creditors holding about $221 million in claims, according to court documents. These creditors included bondholders, real and personal property lessors and lenders, current or former employees and retirees, political subdivisions or state or federal agencies and others.
This confirmation comes less than a year after the hospital district filed for Chapter 9 bankruptcy protection.
Chapter 9 specifically provides for the reorganization of municipalities, providing a grace period within which to propose a plan for the adjustment of the municipality’s debts to third parties. Trios Health’s restructuring reduces the company’s pre-bankruptcy debt by about $350 million.
“These financial commitments made by creditors demonstrate the interest and support in restructuring Trios Health’s financial affairs, servicing supplier contracts and enabling us to continue caring for the community well into the future. I am pleased and appreciative of our employees and patients who have supported us throughout this challenging process,” said Marv Kinney, president of the KPHD Board of Commissioners, in a statement.
After clearing bankruptcy, Trios Health will continue to provide patient care and expand its services in the Tri-Cities.
Trios Health will become part of RCCH HealthCare Partners through its joint venture with UW Medicine, RCCH – UW Medicine Healthcare Holdings LLC, according to a Trios Health release. It’s unclear how long this could take but could be within 30 to 60 days, according to Trios officials.
Last year, RCCH announced its interest to the hospital district’s Board of Commissioners.
In February, RCCH formalized a public-private partnership with UW Medicine to own and operate community hospitals in Washington, Alaska and Idaho.
RCCH will operate and manage these facilities and UW Medicine will provide clinical and quality expertise. Trios Health is expected to be the second facility to operate under the RCCH-UW Medicine partnership.
“Our providers and staff are relieved to have this chapter behind us and are looking forward to the future,” Kinney said in a statement. “It’s been a tough couple of years, but one would be challenged to find a team as dedicated to their mission of community service as the Trios team.”
Trios Health is the Kennewick Public Hospital District’s system of care serving the greater Tri-Cities. The district operates two hospitals, Trios Women’s and Children’s Hospital and Trios Southridge Hospital.
Trios Medical Group, comprised of nearly 100 employed physicians and providers, serves as the core of a growing medical staff network of more than 325 providers throughout the Tri-Cities and includes practices and services at six care centers and one Urgent Care Center.