Hillsboro Community Hospital’s parent company, HMC/CAH Consolidated Inc., exited from Chapter 11 bankruptcy after 15 months of reorganization on Jan. 17.
All 12 of the company’s hospitals — located in rural communities — remain in operation following the reorganization. The company filed for bankruptcy protection on Oct. 11, 2011.
As part of its reorganization, the company sold its management rights to a new company named Rural Community Hospitals of America LLC that will operate independently. Former HMC/CAH CEO Larry Arthur is now the CEO of Rural Community Hospitals of America.
HMC/CAH had planned to build a new hospital on the northeast corner of Hillsboro and even had a groundbreaking ceremony in December 2010. But financing fell through in January 2011, leading to the company’s bankruptcy reorganization.
Hillsboro Community Hospital has been profitable for several years running, said Trent Skaggs, senior vice president of strategic planning and corporate compliance in October 2011.
HMC/CAH owns 12 hospitals, all in rural communities.