EDEN, N.C. — Due to ongoing financial pressures, the Board of Trustees at Morehead Memorial Hospital filed on Monday for protection under Chapter 11 of the U.S. Bankruptcy Code, according to a news release.
The move aims to allow the hospital to restructure its debt to reach financial stability and ensure its long-term success. The reorganization strengthens Morehead’s potential to find a strategic partner, the news release said.
Morehead will continue to operate and officials said patients should not notice a change during the petition process.
“Reorganization will allow Morehead Hospital the opportunity to align its operations strategically to meet the health care needs of our community,” said Eugene Russell, Chairman of Morehead’s Board of Trustees. During Chapter 11, Morehead will continue to maintain the high level of excellence that has driven its ability to provide trusted care in the community for nearly 60 years.
The hospital’s approximately 700 employees were notified on Tuesday about the board’s action. They were told that Morehead’s doors will stay open and their jobs will continue. No lay-offs are expected due to the filing, and Morehead’s leadership team plans to remain in place.
Morehead Memorial Hospital opened in 1960. Its construction was funded by donations from local individuals, businesses and industries, as well as a generous gift from John Motley Morehead III, for whom the hospital is named.
The nonprofit hospital entered into a management agreement with Novant Health in 2014. Prior to that, it was managed by Quorum Health Resources.