The U.S. Bankruptcy Court for the District of Vermont in Burlington confirmed the chapter 11 reorganization plans of Springfield Medical Care Systems and Springfield Hospital, allowing the two related organizations to exit bankruptcy, the Valley News reported. Bankruptcy Judge Colleen A. Brown confirmed the exit plans, which hinge in large part on exit funding from the state of Vermont, in hearings yesterday. The confirmation of the plans is the final step in the reorganization process the two related entities began in June 2019 when they faced a total of roughly $20 million in debt. As a result of the restructuring, the two organizations — the hospital and the health care system’s outpatient clinics — will have separate boards of directors, but will continue to work together to provide care to patients.
