BMC Files for Operating Bankruptcy Protection

SOUTH RENOVO – Bucktail Medical Center has filed for operating bankruptcy.

The filing for Chapter 11 relief occurred on Oct. 2 in Federal Bankruptcy Court for the Middle District of Pennsylvania. The South Renovo medical center has retained the Johnstown firm of Spence, Custer, Saylor, Wolfe & Rose as its counsel.

Creditors were notified by mail this week of the filing. The court protection, if approved, should allow Bucktail Medical Center to continue to operate while it tries to catch up from earlier financial woes.

Bucktail administrators had a meeting with community members last month, offering an update on efforts to cut costs and pay-off debt. Chief Executive Officer Timothy Reeves said at the time that two vendors had filed actions for outstanding debt, one filing a judgment. He said at that meeting that BMC had until Oct. 15 to either work out a settlement of file for Chapter 11.

In September Reeves said the outstanding debt at one point amounted to more than $3.1 million. He said at the time that the institution’s finances were improving and the medical center hoped to avoid bankruptcy.

This week’s court notice to vendors said any objections to the relief requested must be filed in bankruptcy court in Wilkes-Barre by Oct. 19.

Despite its financial problems, Reeves said in September he expects the medical center to survive. “I see no risk that the hospital is not going to survive,” he said. Information at that meeting was that although the center’s debt is significant, BMC has been meeting payroll and needs of residents and patients; there have been no layoffs or job eliminations; most provided services have been brought back in house and the physicians’ service is the last outsourced service.

Reeves was not immediately available for comment today.