Fitzgibbon Hospital in Marshall, Missouri announced on Apr. 21 that it has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code and secured a partner for the sale of its facility. The hospital said this decision aims to stabilize its financial situation while maintaining uninterrupted patient care and preserving access to essential healthcare services in the area.
The hospital’s leadership said that entering Chapter 11 will allow Fitzgibbon Hospital and The Living Center to continue normal operations without disruption. Employees will continue to be paid, and patients will receive ongoing care from physicians, nurses, and staff.
“Our priority is, and always will be, the health and well-being of the communities we serve,” said Angy Littrell, President and Chief Executive Officer. “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.”
Like many rural hospitals nationwide, Fitzgibbon Hospital has faced increasing financial pressures in recent years due to rising operating costs, workforce shortages, lower reimbursement rates from Medicare and Medicaid, as well as underpayment by commercial insurers. As a private not-for-profit institution, Fitzgibbon relies solely on service revenue and donations.
Board of Trustees President Bud Summers said that after evaluating all available options with healthcare advisory firms specializing in restructuring as well as attorneys, leadership determined that filing for Chapter 11 alongside a proposed sale was “the best path forward.” He added that discussions with potential partners had been ongoing for more than a year.
In recent years Fitzgibbon implemented expense-reduction measures such as closing its Intensive Care Unit, inpatient Behavioral Health Unit, Home Health agencies, chiropractic clinic, two primary care clinics in Fayette and Brunswick (Missouri), eliminating executive positions—which led to staff layoffs—and selling an approximately 44-acre parcel of land adjacent to its campus.
Despite these changes Fitzgibbon will continue operating its acute care hospital including a round-the-clock Emergency Department along with core services at The Living Center long-term care facility. Leadership encourages patients with scheduled appointments or procedures to keep them as planned.
“I want to assure the community that our doors remain open,” Littrell said. “We will continue to focus on offering quality health care while we work through this period… Without patients we have no hospital.” For updates or further information people are encouraged visit www.fitzgibbon.org or contact Richard DeFord at 660-831-3235.
