x
Breaking News
More () »

Defiance County hospital temporarily suspending services due to long-term financial issues, CEO says

The interim CEO of Community Memorial Hospital said the hospital has been facing financial issues for over a decade, but they are working to try and resume services.

HICKSVILLE, Ohio —

Community Memorial Hospital temporarily suspended services on Sunday. 

The hospital has had years of financial issues, interim CEO Bill Cherry said.  

Cherry said the hospital was struggling to recover after entering a fraudulent laboratory agreement in 2016. He said the hospital was ordered to pay back $25 million to insurance companies.  

Because of this, the hospital was unable to pay some vendors over that period of time.

"(It) resulted in us accumulating more and more debt," Cherry said.

There were not a lot of options left, leading to the hospital's decision to temporarily suspend services.

RELATED: Defiance County hospital 'pursuing all avenues' to restore operations

The hospital is currently not providing emergency, radiology or laboratory services, but Cherry said it does not mean the hospital will close. 

"Over the last several months we put together a plan which we thought was the best way forward for the hospital," Cherry said. 

The choice made was to pursue a Chapter 9 bankruptcy reorganization, he said, and they filed papers with the tax commissioner in April. However, it was not accepted.  

The hospital is continuing to look at other options, whether it be partnerships with other organizations or obtaining funding from external services. The goal is to avoid permanently closing.  

The staff was furloughed, and Cherry said they are working with other regional healthcare providers to find openings for staff members.  

Hicksville Mayor Michael Barth said he has heard concerns from residents about the additional travel time it will now take to get to a hospital.

"Some of your residents that don't have transportation needs that can maybe find friends or family or take them locally," Barth said. "When you have something locally, that's a great asset." 

EMS staff has been working to prepare to bring people to other facilities in the area, Barth said. Some of the other hospitals are in Parkview Health's system and are prepared for any potential influx.

"Parkview Bryan Hospital, Parkview DeKalb Hospital and Parkview Regional Medical Center are ready to care for patients from Hicksville and the surrounding area," a Parkview Health spokesperson said in a statement. "We will continue to partner with area first responders, as we’ve done for many years, to best meet the community’s critical care needs throughout this transition."

Cherry said the Community Memorial Hospital will continue working on finding alternatives to hopefully resume services.

MORE LOCAL HEADLINES FROM WTOL 11:

Want more from WTOL 11 News?

➡️ Download the WTOL 11 weather app for the latest local 10-day forecast and live radar!

➡️ Download the WTOL 11 news app for Apple here or get it in the Google store here.

➡️ Get a fresh start to your morning and wrap up your day with the latest news and your WTOL 11 Weather forecast delivered right to your inbox!

WTOL 11's Your Morning Blast and Your Evening Blast deliver stories from northwest Ohio, southeast Michigan and beyond to keep you informed. Click here to get on the list!

➡️ Looking for the lowest current local gas prices? Check out the WTOL 11 gas price tracker, powered by Gas Buddy, here.

➡️ Stay up to date on what's happening in your community with a 24/7 live stream and on-demand content from WTOL 11+. Our free WTOL 11+ apps are available on Roku and Fire TV.

WTOL 11+ features the latest breaking news and weather, plus daily talk shows, coverage of your favorite sports teams from Locked On, fact-checking from VERIFY and the latest trending stories from Daily Blast Live.

Before You Leave, Check This Out