ONEIDA (WATE) – Pioneer Health Services, Inc filed for Chapter 11 bankruptcy Thursday. The company owns Pioneer Community Hospital of Scott County.
The company has suffered financial strains because of changes to the healthcare industry. The company cites “decreases in reimbursement through high deductible plans, two percent sequestration, requirements to invest in an electronic health records system, denials for appropriate hospital stays by insurance companies and delays in payment by those same insurance companies” as factor for financial strains.
The company’s President and CEO Joseph S. McNulty III said, “Our ultimate goal is to stabilize the entire organization for a long term successful future for the communities and patients we serve. And with the support of our employees and community during this time of transition, we will be successful in coming out of this trying time for a very bright future.”
According to Scott County’s Chamber of Commerce, roughly 30-40 staff members will lose their jobs as a result. The emergency room will remain open, but the patient floor will close, so they will no longer see overnight patients.
“Most of them will be nursing jobs. There will also be some dietary, housecleaning positions, things like that,” said Ben Garrett, the chamber’s vice president.
The hospital closed down completely in May 2012 while it was under different ownership. The community spent a year and a half with no hospital.
“Definitely better than last time. Not having a hospital or ER open is very difficult for a lot of people. It’s a shame people are losing their jobs, but keeping the ER open is going to be a blessing for us,” said Scott County resident Rebecca Gunter.
The company owns six hospitals and 23 physical therapy clinics around the southeast. Other hospitals that are affected by the filing include Medicomp, Inc., Pioneer Community Hospital Stokes, Pioneer Community Hospital Patrick, Pioneer Community Hospital Aberdeen.