BMC Corporate Members Give Chapter 11 Nod If Needed

AdminNovember 11, 2014Last Updated: November 11, 2014

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The Bucktail Medical Center administrators and board of directors held a special meeting Monday evening at the Chapman Township Fire Hall. About sixty people attended the meeting to hear that the board is considering filing Chapter 11 bankruptcy to get time and relief to meeting its $2.3 million debt. Pictured from the left: Board member John Kurutz, chief financial officer George Gerber, BMC Administrator Timothy Reeves, board president Harriet "Babe" Nuss, board vice president Nea Brown,and board members Carla Flack, Eleanor Kepler, Anna Knauff, Jack Bruno and Ray Bratton. Record photo - Barbara Mstriania — The Bucktail Medical Center administrators and board of directors held a special meeting Monday evening at the Chapman Township Fire Hall. About sixty people attended the meeting to hear that the board is considering filing Chapter 11 bankruptcy to get time and relief to meeting its $2.3 million debt. Pictured from the left: Board member John Kurutz, chief financial officer George Gerber, BMC Administrator Timothy Reeves, board president Harriet “Babe” Nuss, board vice president Nea Brown,and board members Carla Flack, Eleanor Kepler, Anna Knauff, Jack Bruno and Ray Bratton. Record photo – Barbara Mstriania

by Barbara Mastriania

CHAPMAN TWP. – Bucktail Medical Center Corporate members voted 47-4 Monday night to allow the board to file for Chapter 11 Bankruptcy if needed.

 Chapter 11 would give the center relief and time to work out a solution to its $2.3 million debt (excluding vendor debt) while paying its way with the current daily operations.

 According to information at the Monday meeting, although the center’s debt is significant, BMC is up to date with its taxes and has been meeting payroll and needs of residents and patients.  It would also protect money the center is slated to receive between now and April. Officials said without the Chapter 11 protection, the bank could confiscate any money the center receives toward the money BMC owes it.

 Timothy Reeves, the center’s administrator since August, said the Chapter 11 status would not change the day to day operations at the hospital; and while the board is considering filing for Chapter 11 relief, it has already taken important steps to financial stability.

 Harriet Nuss, president of the board of directors said the board has tried everything it can to save money. “There’s not one stone that has not been turned on how we can save money.”

 While the debt has been building for years, officials said the “killer” to the financial woes was the excessive fees BMC paid in recent years for out-sourcing physician, therapy, dietary and housekeeping services. When the board hired others to provide those services it was with the idea they would be saving money. However, Reeves said, it became clear BMC needed to bring the services back in house.

 As it turned out, the cost was in some cases as much as 60 percent higher than in-house. In the last four weeks changes have been made to bring back in-house therapy services and dietary and housekeeping services.

 BMC is slated to receive two large payments in months to come. The amounts were not revealed at the special meeting held Monday night. The payments are from state or federal governments because the center provides care for low income people. The first is expected in four to six weeks, the second is expected in April. The money is payment for services provided in 2013.