image description
Northern Berkshire Healthcare filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court.
image description

Bankruptcy Court Makes Emergency Services A Priority

By Andy McKeeveriBerkshires Staff
Print Story | Email Story
Members of the Massachusetts Nurses Association rally outside the federal courthouse in Springfield.

SPRINGFIELD, Mass. — A U.S. Bankruptcy Court judge agreed on Monday that reopening emergency services in North Berkshire was a priority.

There is a question, however, on where those services could be provided.

Judge Henry J. Boroff, presiding over the Chapter 7 liquidation filing of Northern Berkshire Healthcare, went so far as to wonder if he shouldn't put in an extra layer of authority to uphold the state's previous order for Berkshire Medical Center to operate the Emergency Department.

"The first priority is to get emergency services up at this point," he said.

Stakeholders in the process — including court-appointed Trustee Harold B. Murphy, attorneys for the state and Berkshire Health Systems and major creditor Wells Fargo Bank — assured Boroff that they were in agreement.

"It's is my understand that Berkshire is moving as quickly as possible to reopen the emergency room. It is still unclear where," said Murphy, of Murphy & King PC of Boston. "I am willing to make the premise available."

The health-care system announced on March 25 the abrupt closure of its operations after negotiations with Berkshire Health Systems for a partnership or merger fell through. NBH had been skating on thin financial ice for years, including undergoing a Chapter 11 bankruptcy reorganization.

Berkshire Superior Court Judge John J. Agostini, at the request of the attorney general's office, issued a temporary restraining order preventing assets critical to the ER's reopening from being removed and charging Berkshire Medical Center LLC to take over its operations.  

A hearing on the restraining order set for Tuesday in Hampden Superior Court, where Agostini is presiding, has been postponed to next week.

BMC is currently maintaining the electronic records, answering phones and providing maintenance and security on the NARH campus. The state has licensed BMC to operate a satellite emergency facility, but further federal approvals are required.

Currently about 150 people are hired to provide critical functions. VNA & Hospice of Northern Berkshire and OB/GYN are also being restored but all could be off site.

Representatives for BMC said the high cost of utilities for operating the Emergency Department and ancillary services at North Adams Regional Hospital has the Pittsfield hospital looking at other locations.

"The question is not so much which services will be provided but where," said Joseph H. Baldiga of Mirick, O'Connell, DeMallie, Lougee, representing BMC. "Berkshire has to make sure they don't get stretched too thin. ...



"We are moving toward alternative services this week."

Murphy is also being charged to look into the circumstances regarding NBH's swift closure. The attorney general's office is also investigating the closure in regard to the 90-day notice required by the state.

"We will do a full review of operations and how we ended up where we are," Murphy said, noting the health-care system's precipitous financial decline. "The revenue really dropped off a cliff."

The hospital itself appears to be in very good shape but it's specialization will make it difficult to liquidate.

"It seems to be a special purpose building and it will be a process to dispose of it," he said.

Murphy said the nonprofit corporation had about $700,000 cash on hand for outstanding obligations and that there were "substantial claims" against Blue Cross Blue Shield for insurance payments.

J. Mark Fisher of Schiff Hardin LLP, representing Well Fargo Bank, National Association, which holds bonds issued for NBH in 2012, said the bank was owed about $30 million.

The bondholders were concerned with sudden closure but want to be "constructive," he said, in moving it forward.

Members of the Massachusetts Nurses Association rallied outside the court house hoping their presence would impress upon the court the region's medical needs.

"We would like to save the whole hospital, we know it needs to be started slowly," said Diane George, a registered nurse who worked in ER.  "In the community that we're in, we need a full service hospital. We would appreciate that being looked at seriously."

All those in the courtroom agreed that restoring medical services in some form would be a priority, but Murphy pointed out that it could no longer be Northern Berkshire Healthcare.

"We can try to make it easier for others to make it work and pick up the pieces. But the debtor is out of business."


Tags: bankruptcy,   closure,   NARH,   NBH,   

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

Williamstown Select Board Plans Off-Camera Evaluation of Town Manager

By Stephen DravisiBerkshires Staff
WILLIAMSTOWN, Mass. — The Select Board plans to take extraordinary measures to avoid having its discussion of the town manager's performance recorded by the town's Public, Educational and Government cameras.
 
At its Sept. 28 meeting, the board decided to hold a special meeting in a room not covered by WilliNet cameras to complete its annual evaluation process of Town Manager Robert Menicocci.
 
Chair Peter Beck said that while the evaluation is "absolutely" to be conducted in an open meeting, the board could follow a process similar to the off site, unrecorded meetings that past Select Boards have characterized as "retreats," a term not contemplated by or included in the commonwealth's Open Meeting Law.
 
The current board met on June 29 for what it characterized as a "planning session" where no formal votes were taken. That meeting was held outside of Town Hall, at the new fire station on Main Street, in a room equipped with audio and video recording equipment that the Select Board chose not to use.
 
At the Sept. 28 meeting, one board member indicated that an unrecorded meeting was preferable to discuss the annual evaluation of the one town employee supervised by the board.
 
"I'd like to do it without all the Willinet stuff," Stephanie Boyd said in a discussion toward the end of a two-hour meeting. "I think it's more conducive to conversation."
 
With the board expected to meet just once in October — its "regular" meeting date coincides with Indigenous Peoples Day on Oct. 12 — Beck suggested that the panel could find a date for a special meeting, suggesting the third Monday of the month, Oct. 19.
 
View Full Story

More Williamstown Stories