{"id":11337,"date":"2020-09-01T15:35:02","date_gmt":"2020-09-01T20:35:02","guid":{"rendered":"https:\/\/www.billingparadise.com\/blog\/?p=11337"},"modified":"2026-03-12T07:00:09","modified_gmt":"2026-03-12T12:00:09","slug":"thomas-healths-bankruptcy-plan-gets-approval","status":"publish","type":"post","link":"https:\/\/www.billingparadise.com\/blog\/thomas-healths-bankruptcy-plan-gets-approval\/","title":{"rendered":"Thomas Health\u2019s Bankruptcy Plan Gets Approval"},"content":{"rendered":"

COVID-19 has decimated the economy and several businesses have either been forced to lay off their employees and the more unfortunate ones have had to completely go out of business. The revenue loss during the pandemic lockdown has been staggering to hospitals and health systems have been hanging by the semas and grappling for any life line available to them.<\/span><\/p>\n

\"\"Some of the safety measures put in place, such as freezing elective procedures and the sudden dip in patient volume due to the COVID-19 were devastating losses for the healthcare sector as a whole. All of a sudden, hospitals and health systems had to grapple with controlling the losses, implement new protocols and procedures, change their business plan, provide safety for employees lives and transition to virtual operations and all of this and so much more had to be done while being flooded by infected patients and in an economy which had not been doing well to begin with.<\/span><\/p>\n

It is still hard to wrap our mind on the devastation COVID-19 has left in its wake. The livelihoods and lives of some many people were lost. Physicians and healthcare professionals were forced to forge on ahead and combat this pandemic without proper safety equipment and hospitals had to provide for all with their dwindling resources.<\/span><\/p>\n

Considering even a fraction of the problems caused by the pandemic, it comes as no surprise that several healthcare organizations were forced to declare bankruptcy. One such health system is Thomas Health System, based in West Virginia.\u00a0\u00a0<\/span><\/p>\n

Thomas Health had filed for Chapter 11 bankruptcy protection in January. Given the timing it can be understood that they were severely challenged revenue-wise even before the pandemic. The pandemic just made it worse. Among the reasons for their predicament, the most notable ones are reduced reimbursements & patient outmigration.\u00a0<\/span><\/p>\n

In June 30, second quarter they reported a loss of $6.1 million, which was significantly higher than the loss they incurred in the year 2019, at the same time, $2.3 million. In addition, the COVID-19 pandemic has negatively affected finances at Thomas Health. It said from mid-March to June 2020, it saw its volumes decline about 43.9 percent, which resulted in a weekly revenue decline of $23.9 million over 16 weeks.\u00a0<\/span><\/p>\n

To top it all off, the system said it has negative 120 days cash on hand, which is below the covenant of 55 days. Thomas Health said its cash on hand is in breach because the system “was in default on its existing bond indebtedness at the end of fiscal year 2019.”<\/span><\/p>\n

This has put an unimaginable burden on the employees of the health system. Fortunately, according to a report on <\/span>Becker\u2019s Hospital Review<\/span><\/a>, a restructuring plan was approved by a bankruptcy judge on Aug. 14, which will enable the health system to survive bankruptcy and allow all the workers to retain their jobs. With the support from a bond sale that should help pay off the $145 million debt at a discounted rate. The exit financing is being provided by Rosemawr Management, an investment adviser based in New York. Thomas Health officials expect the financing for the restructuring plan will be completed by mid-September. Also, Thomas Health said that volumes have slowly returned as of late April, but are still 10 percent to 15 percent below pre-pandemic levels. So things seem to be looking up for now for the employees at Thomas Health.<\/span><\/p>\n<\/div><\/div>[vc_custom_heading text=”Here\u2019s What The CEO Had To Say:” font_container=”tag:h2|font_size:24px|text_align:left” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:400%20regular%3A400%3Anormal”]

Daniel Lauffer, President and CEO of Thomas Health, made this very inspiring statement to the press, \u201cTo be in the position to file a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the last 90 days, is a testament to the hard work of our employees\u201d.<\/span><\/p>\n

Whether this plan of action will work for them or not is yet to be seen. Regardless it is great to see a health system get up, fight back and push through its current obstacle. Thomas Health stands as an example of how COVID-19 might have knocked down the healthcare sector, but the towel has not yet been thrown in.<\/span><\/p>\n

Despite all the damages that our country\u2019s economy has taken because of the safety measures, it can never be denied that the safety protocols were nonetheless mandatory for our survival. Yes, several livelihoods have been lost and while some may never recover from the sustained losses. However, lives were saved and surviving one of the deadliest and still ensuing pandemic is a sign of hope for a more secure and stronger future.\u00a0<\/span><\/p>\n

At <\/span>BillingParadise<\/span><\/a>, we were able to navigate through the losses by transitioning to <\/span>telemedicine<\/span><\/a> billing and developing & distributing telemedicine platforms. We also followed certain key <\/span>strategies<\/span><\/a> that ensured our cash flow.\u00a0<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"COVID-19 has decimated the economy and several businesses have either been forced to lay off their employees and the more unfortunate ones have had to completely go out of business. The revenue loss during the pandemic lockdown has been staggering to hospitals and health systems have been hanging by the semas and grappling for any [...]","protected":false},"author":2,"featured_media":11338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[721,841,717,716],"tags":[],"class_list":["post-11337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-billing-collections","category-medical-billing","category-most-popular","category-most-recent"],"_links":{"self":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts\/11337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/comments?post=11337"}],"version-history":[{"count":1,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts\/11337\/revisions"}],"predecessor-version":[{"id":450402,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts\/11337\/revisions\/450402"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/media\/11338"}],"wp:attachment":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/media?parent=11337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/categories?post=11337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/tags?post=11337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}