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A staffing firm that employs some of the doctors at three rural Maine hospitals — and that reportedly considered filing for bankruptcy last month — now says that it has taken steps to improve its financial position and keep operating.
Envision Healthcare Corp. has been struggling to pay off $7 billion in debt after the coronavirus crisis forced medical systems all across the U.S. to delay lucrative elective services, according to Bloomberg. But on Friday, the company announced that it had found some breathing room by restructuring its debts, using so-called debt exchange transactions that were reviewed by its lenders.
Envision, one of the largest physician staffing firms in the country, employs the ER doctors at Calais Regional Hospital, Penobscot Valley Hospital in Lincoln and Down East Community Hospital in Machias, as well as some doctors who see admitted patients at Down East Community Hospital.
“The exchange transactions represent a de-leveraging of Envision’s existing debt and reduction of its interest expense obligations,” Envision said in a news release.
Those transactions, it said, “will better enable the Company to continue its operations in the fight against COVID-19, as well as to protect its long-term ability to care for patients and communities once the crisis has passed.”
Based on unnamed sources, Bloomberg reported in mid-April that Envision had hired restructuring advisers and was considering seeking Chapter 11 bankruptcy protection.
A company spokesperson has not directly responded to requests for confirmation of whether it was considering filing for bankruptcy or whether that option was still on the table after the recent debt restructuring.