FOR IMMEDIATE RELEASE
6/20/2018 12:00:00 AM
6/20/2018 12:51:46 PM
Trios Health Plan of Reorganization Confirmed by Bankruptcy Court
Kennewick, Wash. – The Kennewick Public Hospital District (KPHD) will emerge from bankruptcy with the confirmation of its Chapter 9 Plan of Adjustment by the United States Bankruptcy Court for the Eastern Division of Washington state. This confirmation comes less than one year after KPHD filed for bankruptcy protection under Chapter 9 of the United States Bankruptcy Code.
KPHD filed for bankruptcy protection on June 30, 2017 (filing number 17-02025-9). Chapter 9 specifically provides for the reorganization of municipalities, providing a grace period of sorts within which to propose a plan for the adjustment of the municipality's debts to third parties. Trios Health’s restructuring reduces the company’s pre-bankruptcy debt by about $350 Million.
“These financial commitments made by creditors demonstrate the interest and support in restructuring Trios Health’s financial affairs, servicing supplier contracts, and enabling us to continue caring for the community well into the future. I am pleased and appreciative of our employees and patients who have supported us throughout this challenging process,” said Marv Kinney, president of the KPHD Board of Commissioners.
With the overwhelming support of all classes of creditors entitled to vote on the plan, Trios Health will emerge from bankruptcy with the ability to continue to provide patient care and expand its services in the Tri-Cities. Trios Health will become part of RCCH HealthCare Partners through its joint venture with UW Medicine, RCCH – UW Medicine Healthcare Holdings, LLC.
Last summer, RCCH announced its interest in Trios Health to the District’s Board of Commissioners. In February 2018, RCCH formalized a public-private partnership with UW Medicine to own and operate community hospitals in Washington, Alaska and Idaho. RCCH will operate and manage these facilities and UW Medicine will provide clinical and quality expertise. Trios Health is expected to be the second facility to operate under the RCCH-UW Medicine partnership.
“Our providers and staff are relieved to have this chapter behind us and are looking forward to the future,” Kinney added. “It’s been a tough couple of years, but one would be challenged to find a team as dedicated to their mission of community service as the Trios team.”