Northern Berkshire Healthcare Files Chapter 7 Bankruptcy

By Tammy DanielsiBerkshires Staff
Print Story | Email Story
Mary Beckman, chief of the AG's Non-Profit Organizations/Public Charities Division, explains some of the difficulties for emergency services in North County.

PITTSFIELD, Mass. — Northern Berkshire Healthcare filed for Chapter 7 bankruptcy Thursday morning, throwing efforts to restore emergency services in North County into uncertainty.

Judge John J. Agostini continued a temporary restraining order on North Adams Regional Hospital to restore emergency services through the auspices of Berkshire Medical Center. The restraining order is continued until a Tuesday hearing in Northampton.

Agostini's authority to continue the restraining order, however, is now called into question because of the bankruptcy filings earlier in the morning.

Attorneys representing the attorney general's office argued that the public health emergency created by the hospital closure takes precedent.

They are asking for a 90-day injunction — the amount of time required by state regulations for closing an "essential hospital service" — to allow time for alternatives to be considered.

"We are reacting to a difficult situation not of our making," said Bart Hollander, chief of the Western Massachusetts Regional Office for Attorney General Martha Coakley.

Daniel C. Cohn of Murtha Cullina LLP, representing Northern Berkshire Healthcare, said his client wanted the talks of reopening the emergency department to continue but the federal bankruptcy proceedings trumped the judge's authority. Until a federal trustee is assigned, there is no one who can make decisions regarding the hospital property.

"Really, there is nothing for this court to do," he said. "There is no one who has legal power to deal with the state's complaint."

Thursday's hearing in Berkshire Superior Court had been for an injunction to prevent the hospital from liquidating assets necessary to operate the emergency department. The temporary restraining order had been put in place last week to provide a mechanism for Berkshire Medical Center to begin the process of re-opening emergency services.

Northern Berkshire Healthcare's a sudden closure last week has complicated the process; there are also federal and state permitting processes that have to be followed.

Attorney John Rogers, representing Berkshire Health Systems, said 110 employees of NBH already have been hired.

Some electronic medical records have been integrated into the BHS system and another 10 days are expected to complete the process.

"We're concerned that a lack of certainty would impede progress," Hollander said.

Judge John J. Agostini extended the temporary restraining order although it was not clear he had authority to do so.

Berkshire Medical Center Inc., charged by the attorney general and state Department of Public Health to operate a satellite emergency service, has been in talks with the NBH leadership and DPH officials. Hollander said as earlier as 9:15 Thursday morning talks had "seemed fruitful and moving in a good direction but did not bear fruit."



There was fear the bankruptcy disruption could now sour negotiations and drag out efforts to reopen services.  

Mary Beckman, the AG's chief of the Non-Profit Organizations/Public Charities Division, said the hospital's closure has already had a significant negative impact on North County ambulance services, forcing them to engage more staff and equipment to manage the hours-long trips to BMC and Southwestern Vermont Medical Center, and their ability to supply items, including increased medical dosage for the longer transports.

"We would encourage your honor to at a minimum to extend the temporary restraining order for another 10 days, or longer than Monday," she asked, to at least ensure some stability.

The state's attorneys said they had learned Wednesday of the possibility of the bankruptcy filing, and were informed on their way to court Thursday morning.

Attorney General Martha Coakley termed the move a "surprise."

"Today's surprise bankruptcy filing by Northern Berkshire Healthcare and the North Adams Regional Hospital Board does not change our goal of ensuring access to safe emergency services for area residents. We are disappointed the board does not appear to share this same goal," she said in a statement. "We are pleased that the court extended its order through Tuesday and we will continue to work with all stakeholders with the purpose of reopening an emergency room in North Adams as soon as possible."

The hospital has previously been in Chapter 11 bankruptcy, which sets up plans for creditors to be paid off. Chapter 7 is another type of filing which allows the liquidation of assets. The restraining order requires all NBH-owned materials stay on premise.

The court also accepted intervenor status for the Massachusetts Nurses Association, representing more than 100 registered nurses at NBH, and Wells Fargo, a senior creditor. Neither the attorney general's office or BHS had issue with the either intervenor. The status of Health Care For All, an advocacy group for accessible health care, was taken under advisement.

Agostini continued the hearing, with the TRO in place, until Tuesday morning pending the appointment of a bankruptcy trustee and any agreements between the parties.

Cohn said afterward that a skeleton staff of essential personnel have been prepaid through the end of the week.  

"We are attempting to provide records, and extend whatever type of cooperation the Department of Public Health needs in order to get emergency services back on, limited, as quickly as possible," he said.

 A bankruptcy trustee would have to the authority to deal with patient records or the mortgage on the property held by the bondholders — including any leasing agreements for Berkshire Medical Center reopening the emergency room.

"We have performed our duties as best we can under the circumstances," he said.

This article was updated with Attorney General Martha Coakley's statement at 4:53 p.m.


Tags: bankruptcy,   closure,   NARH,   NBH,   superior court,   

If you would like to contribute information on this article, contact us at info@iberkshires.com.

Pittsfield CPA Committee Funds Half of FY24 Requests

By Brittany PolitoiBerkshires Staff

PITTSFIELD, Mass. — A few projects are not getting funded by the Community Preservation Committee because of a tight budget.

The projects not making the cut were in the historic preservation and open space and recreation categories and though they were seen as interesting and valuable projects, the urgency was not prevalent enough for this cycle.

"It's a tough year," Chair Danielle Steinmann said.

The panel made its recommendations on Monday after several meetings of presentations from applications. They will advance to the City Council for final approval.  

Two cemetery projects were scored low by the committee and not funded: A $9,500 request from the city for fencing at the West Part Cemetery as outlined in a preservation plan created in 2021 and a $39,500 request from the St. Joseph Cemetery Commission for tombstone restorations.

"I feel personally that they could be pushed back a year," Elizabeth Herland said. "And I think they're both good projects but they don't have the urgency."

It was also decided that George B. Crane Memorial Center's $73,465 application for the creation of a recreational space would not be funded. Herland said the main reason she scored the project low was because it didn't appear to benefit the larger community as much as other projects do.

There was conversation about not funding The Christian Center's $34,100 request for heating system repairs but the committee ended up voting to give it $21,341 when monies were left over.

The total funding request was more than $1.6 million for FY24 and with a budget of $808,547, only about half could be funded. The panel allocated all of the available monies, breaking down into $107,206 for open space and recreation, $276,341 for historic preservation, and $425,000 for community housing.

View Full Story

More Pittsfield Stories