Trios Health emerges from bankruptcy, sells home health program
With nearly a year in bankruptcy soon to be in the rearview, Trios Health is moving ahead with plans to be acquired by private Tennessee company RCCH HealthCare.
Trios also sold its home health service program for $1.1 million on July 2.
The RCCH acquisition, expected to close sometime in late July or early August, does not include Trios Home Health Care.
Kennewick Public Hospital District signed an agreement with Iron Bridge Healthcare Inc., doing business as Columbia River Home Health, a local affiliate of home health, hospice and home care services provider Cornerstone Healthcare, for Trios’ home health operations.
Trios’ home health program’s 18 staffers — 10 registered nurses, four physical therapists, one occupational therapist and three support and administrative staff — were offered positions with Cornerstone or the option to stay at Trios Health in alternative roles, for which they must be qualified.
The U.S. Bankruptcy Court for the Eastern Division of Washington confirmed the hospital district’s Chapter 9 plan for adjustment of debts in June.
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.
The court-approved debt plan comes just shy of 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 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.
Trios Health soon will become part of RCCH HealthCare through its joint venture with UW Medicine, RCCH – UW Medicine Healthcare Holdings LLC, according to a Trios Health release.
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.
“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’ Home Health care program offered in-home care to patients recovering from surgery or injury in their home by skilled caregivers, recording more than 12,800 visits each year.
“We are pleased that the services will continue for the Tri-Cities and with Iron Bridge, which has confirmed its commitment to our home health employees, patients and local community to maintain the excellent standard of care we’ve offered,” said Scott Landrum, Trios Health’s interim chief executive officer, in a news release.
Iron Bridge’s Eric Wise, executive director, said his company is grateful to continue Trios’ legacy of high quality, patient-centered care. “We are excited about the team of talented caregivers who are joining us from Trios. We look forward to serving the Tri-Cities area under the name Columbia River Home Health as we seek to fulfill our mission of providing life-changing home health services to our patients and their families,” Wise said in a statement.
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 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.