Astria

UPDATED STORY May 9, 2019

$28 million dollars, that's how much Astria Health has been approved for.

"It will help us with that shortfall so we can continue the operations strong with supplies, staff and continue to provide great patient care," said John Gallagher, President of Astria Health.

"This is the first loan the organization will receive after filling for bankruptcy on Monday, so in other words this, "Puts us in a very good position," said Gallagher.

Astria's president also says this loan will help keep all of their hospitals running.

"This infusion of funds will help us facilitate, strengthening the hospital and allow us to continue to grow and reinvest in the community as we work through this transition on the revenue cycle," said Gallagher.

The question being how did Astria end up in this situation.

The organization says several changes were happening all at once. Such as purchasing two new hospitals, getting a new electronic system and contracting with a new company to manage revenue.

Despite the challenges, Gallagher wants to ensure employees and patients that Astira is not going anywhere.

"We're going to be here for the long haul, so know that the hospitals are open, the clinics are all open. We don't plan to have any changes except to enhance the services," said Gallagher.

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ORIGINAL STORY May 7, 2019

YAKIMA, Wash. (AP) — A health care company in the Yakima Valley has filed for Chapter 11 bankruptcy protection, saying the move will allow it to protect hospitals in Yakima, Sunnyside and Toppenish.

Astria Health filed on Monday, citing issues with an electronic health records system and a company it hired to manage its revenues.

The Yakima Herald-Republic says many of Astria Health's financial challenges originated at the Yakima hospital, where debts are much higher than assets, according to bankruptcy filings.

Astria Health has secured a $36 million loan that will fund its operations while it works through the bankruptcy process. Officials said they don't plan to close facilities and jobs and wages will not be affected.

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Information from: Yakima Herald-Republic, http://www.yakimaherald.com

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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