Marshall hospital announces Chapter 11 bankruptcy

COLUMBIA, Mo. (KMIZ)

A century-old hospital in Marshall has filed for bankruptcy.

Fitzgibbon Hospital announced in a Tuesday social media post that it has filed for Chapter 11 bankruptcy and has “secured a partner for sale of the facility.” The sale includes The Living Center.

“Our priority is, and always will be, the health and well-being of the communities we serve,” hospital President and CEO Angy Littrell is quoted in the release. “Filing for Chapter 11 gives us the time and structure needed to address financial challenges while continuing to provide the critical services our patients and residents depend on every day.”

The hospital cited issues including rising operating costs, staffing shortages “and reimbursement at less than cost from non-negotiable governmental payers like Medicare and Medicaid and non-payment or underpayment for services provided from commercial insurers.”

The release also says the hospital only receives revenue from the services it provides and from donations because of its status as a not-for-profit hospital.  

The post says Fitzgibbon will continue to run its acute care hospital, which includes core services, a 24/7 emergency department and long-term care facility. Patients with appointments should keep them and “arrive as instructed,” the post says.

“I want to assure the community that our doors remain open, and we will continue to focus on offering quality health care while we work through this period,” Littrell was quoted in the release.