(Pilot Knob) It appears Iron County Medical Center in Pilot Knob is close to becoming financially viable to continue operating.
The hospital filed for Chapter 9 bankruptcy in February 2018.
Last year, a judge ordered hospital officials and the USDA to come up with a resolution to the case.
The USDA holds the special revenue bonds that were issued to allow the hospital to be built back in 2006.
The hospital did receive major concessions from Medicaid and Medicare regarding past debts.
However, the USDA had asserted they are the only ones with a right to payment through the hospital’s bankruptcy plan.
However last month, the USDA agreed to exchange it’s debt for a new 40-year bond and would also forgive some interest.
If creditors approve the plan on March 2nd, the hospital will be allowed to stay open.
But if the plan is approved, the hospital in Pilot Knob would remain in Chapter 9 bankruptcy for five years while it follows terms of the plan.
The new 40-year bond the USDA will hold, would have a maximum interest rate of 3.5-percent to replace the old 6.8 million dollar bond.
If approved and the Iron County hospital stays open, this would be an exception as it would be only 1 of 7 Missouri rural hospitals that would continue to stay open.
Six rural hospitals in Missouri have closed since 2014.
The hospital CEO says in the St. Louis Post-Dispatch that Medicaid expansion approved by the Missouri legislature would be a big help for the struggling hospital in Iron County.