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Pioneer Health files under Chapter 11

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Magee, Miss.-based Pioneer Health Services, which owns hospitals in Georgia, North Carolina, Mississippi, Tennessee and Virginia, has filed for protection under Chapter 11 of the U.S. Bankruptcy Act, according to The Stokes News.

Officials at Pioneer Hospital of Stokes, in Danbury, N.C., hope the bankruptcy process, which could take up to two years, will stabilize operations.

“It will allow us to keep the vendors we have for our supply base and pay our creditors over time,” Pam Tillman, the hospital’s assistant CEO, told staffers.  “The ultimate goal is to stabilize the entire organization for a long-term successful future for the communities and patients we serve.”

Ms. Tillman reassured hospital staff they would continue to be paid during the restructuring.

The system cited delays in reimbursement by insurance companies, increased use of high-deductible health plans and the need to invest in an EHR system in the filing for protection.

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