The Mandeville company that owns rural hospitals in Winnfield, Marksville and Oakdale, and formerly operated a medical center in New Iberia, filed for bankruptcy last week.
Progressive Acute Care LLC filed for Chapter 11 creditor protection for Winn Parish Medical Center, Avoyelles Hospital and Oakdale Community Hospital. The facilities continue to provide health care but are seeking a reprieve from creditors as company officials work to shore up finances.
Progressive also filed Chapter 7 bankruptcy documents for the former Dauterive Hospital in New Iberia, which Progressive closed in December. In January, Dauterive Hospital’s longtime crosstown rival — Iberia Medical Center — bought the assets of Dauterive Hospital. IMC is reopening the former Dauterive facility, located on North Lewis Street, in phases.
Parker Templeton, CEO for Iberia Medical Center, declined to disclose the price IMC paid for the assets. He said IMC bought the real estate, the building and equipment but not the medical records of Dauterive’s former patients. Templeton said it was up to individuals to collect their records from Progressive.
“We have continued to provide high-quality, patient-centered care here,” Templeton said.
Templeton said no patients went without medical care due to Dauterive shutting down, and he said no doctors left New Iberia’s medical community because of the closing.
Progressive CEO Daniel Rissing did not return repeated messages left last week at the company’s Mandeville headquarters. Officials at the Winnfield, Marksville and Oakdale hospitals referred questions to Rissing and the Mandeville office on the north shore of Lake Pontchartrain.
In the bankruptcy filings, Progressive listed the total value of its assets at between $1 million to $10 million, and its liabilities at between $10 million and $50 million. Federal bankruptcy forms that are filed initially contain wide ranges for what’s owned and what’s owed. Specific figures are fleshed out as the bankruptcy proceeds.
The documents also list the unpaid utility bills at Progressive’s three operating hospitals, the payments of which are now delayed due to the Chapter 11 filings. The documents show Avoyelles Hospital owes AT&T over $5,000 and Entergy over $20,000; Oakdale Community Hospital owes AT&T about $7,000 and Cleco over $17,000; and Winn Parish Medical Center owes AT&T about $2,100 and its power provider, the city of Winnfield, almost $12,000.
Templeton, the New Iberia chief for IMC, said the downturn in the oil and gas industry has hurt the Acadiana economy, including those who provide health care. But, he said, the real economic crusher for the state’s medical community has been Louisiana’s reluctance to expand Medicaid coverage for the poor.
That situation is changing: On Wednesday, Louisiana started enrolling more people in Medicaid, the federal health insurance for poor people.
Templeton said, “For many years, we left significant federal matching dollars on the table,” which “caused significant stress on all of the health care providers across our state.”
Medicaid expansion was blocked by former Gov. Bobby Jindal, who sought to fortify his conservative bona fides for a run at the Republican presidential nomination.
One of the first actions of newly installed Gov. John Bel Edwards, a Democrat, was accepting the federal government’s invitation to expand Louisiana’s Medicaid rolls.
Templeton said IMC has hired more than 100 of the former Dauterive workers and currently performs outpatient procedures at the once-shuttered facility. He said plans call for in-patient services toward the end of 2016, and by Oct. 1, the hospital will open the only geriatric psychiatry ward in Iberia Parish.
Follow Billy Gunn on Twitter, @BillyGunnAcad