An unpleasant odyssey that began in January more pleasantly concluded Friday for Thomas Health.
A federal judge approved the system’s reorganization plan, allowing Thomas and its subsidiaries to emerge from Chapter 11 bankruptcy slightly more than seven months after it sought protection.
That plan provides for the discounted refunding of almost $145 million in bond debt. Rosemawr Management, an New York-based investment adviser, is providing exit financing.
“To be in the position to file a viable plan that will restructure and strengthen our balance sheet, while maintaining and continuing to treat our patients, especially during times as unprecedented as the last 90 days, is a testament to the hard work of our employees,” Thomas Health President and CEO Dan Lauffer said in a news release.
Lauffer’s reference to “unprecedented times” speaks for itself but nonetheless is worth underscoring. No time is a good one for any entity to enter bankruptcy, but the timing and entity in this case were acutely unfortunate.
Thomas serves 275,000 patients annually and employs 1,650 people, operating Thomas Memorial and Saint Francis hospitals and Thomas Health Physician Partners and TMH Services.
Struggles for such an organization amid a pandemic bore the capacity to deliver a double shot to the midsection of the region, potentially affecting both healthcare and employment.
But Thomas weathered the storms and forged a reorganization plan while simultaneously pursuing its core mission.
Earlier this month, Gov. Jim Justice announced the state had accepted Thomas’ offer for Saint Francis to act as a COVID-19 surge hospital. In April, Saint Francis reconfigured two floors and added beds and equipment to serve as many as 75 coronavirus patients.
“Thomas Heath and Saint Francis stand ready to care for the community during this difficult time,” Lauffer said at the time.
Here’s hoping that no surge comes, but every bit of available help will be needed if it does.
For this reason and many others, Thomas Health’s emergence from bankruptcy is welcome news. In approving Thomas Health’s plan Friday, federal Judge Frank Volk described it as a “resolution that preserved a healthcare entity that has had a long presence in this state.”
“Thomas is relied upon daily by not only those who are employed there,” he added, “but also those who seek care within its walls. That’s especially so, given the challenges we currently confront.”
Chapter 11 is a path no one wants to follow as we know well with this newspaper having been purchased from bankruptcy in 2018 by HD Media LLC, our current owner. Volk approved that deal.
As a result, we are here to hail Thomas Health’s swift arrival at the other side January’s filing.
We know well from what we and others have seen that much work remains to be done. But our shared experiences with Thomas Health also include rich heritages. Saint Francis in Charleston has served the community for more than a century. Thomas Memorial in South Charleston has done so since 1946. And our roots run to 1873.
That history spans wars, recessions, outbreaks and too many calamities to count. Both the institutions that make up Thomas Health and this newspaper are pillars that have shaken but stood. We commend Thomas for the difficult work that led to Friday’s emergence and look forward to the system and its dedicated staff continuing their good work in this community for many generations to come.