Northern Berkshire Healthcare Files Chapter 11 Bankruptcy

By Tammy DanielsiBerkshires Staff
Print Story | Email Story
NORTH ADAMS, Mass. — Northern Berkshire Healthcare filed for Chapter 11 protection in U.S. Bankruptcy Court in Springfield on Monday.

Chief Executive Officer Richard Palmisano said the filing will not affect patient care or employees.

"In reality, from the standpoint of the consumer, there will be no change. For staff, there will be no change; they will continue to get their paychecks and their pension benefits," Palmisano said on Monday.

The move had been long expected as the health-care system struggled to get a handle on its nearly $50 million debt burden and its pension liabilities. Last week, it reorganized its administration, splitting Palmisano's jobs of CEO and president and adding on the duties of a "chief restructuring officer" to concentrate on the system's finances. William "Bill" Frado Jr., a member of the board of trustees, was named president while Palmisano retained his post as CEO.

NBH had been in "very intensive" discussions with bondholders over the past six to nine months, said Palmisano on Monday. The bond debt is related to major improvements and expansion at North Adams Regional Hospital and the purchase of two nursing and retirement community facilities in Williamstown that have since been sold off at a loss.

Last week, the hospital tendered another debt restructuring proposal that was not taken up by bondholders.

"We concluded that the bondholders were not understanding our situation clearly, so we put together a proposal of where we wanted to go," Palmisano said. The bondholders responded with a counterproposal "that clearly told us they weren't understanding our situation."

The hospital had prepared filings twice before but held off in hopes of reaching an agreement. Officials felt now was the appropriate time to seek court protection.

Prior debt is now frozen while the court reviews the matter; Palmisano said all current debt must be paid COD, or cash on delivery. "So what we buy, we have to pay right way," he said. "We have been working diligently to ensure we have the resources until we emerge from bankruptcy."

He estimated it would take six to seven months, although it could move faster. "The court will understand the importance of this institution and that the protected restructuring process will make it harder for us to continue to provide services to this community."

At the same time, the hospital will continue to move forward with moving its pension funds to the federal Pension Benefit Guaranty Corp. It is still seeking a health-care partner to affiliate with and pursuing federal Critical Access Hospital status, which could bring more funding into the system.

"I think what is critical is that people hear the word bankruptcy, they think of liquidation," said Palmisano. "That's not the case here. I think a better analogy would be what happened when General Motors emerged from bankruptcy with a level [of debt] they could sustain."

Even with the restructuring, the hospital will never be a wealthy institution because of the region's demographics. But it can be a healthy and quality institution, Palmisano said.

Tags: bankruptcy,   NARH,   

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

National Grid Hosts Customer Assistance Events In The Berkshires

WALTHAM, Mass. — National Grid will hold a series of in-person Customer Assistance Events this December. 
 
As colder weather sets in, these events are designed to help customers manage winter energy bills and explore cost-saving programs.
 
In Berkshire County:
  • Dec. 4 – Town Library, Williamstown, 4:00pm – 8:00pm, 1095 Main Street, Williamstown
  • Dec. 5 – National Grid Great Barrington Office, 11:00am – 2:00pm, 927 South Main Street, Great Barrington
  • Dec. 5 – Sheffield Bushnell-Sage Library, 5:00pm – 8:00pm, 97 Main Street, Sheffield
Many of these events will continue to take place at local senior centers, making it convenient for older residents to access personalized assistance. Attendees at any location will have direct access to National Grid Customer Service Specialists, who can provide personalized guidance on payment options and energy solutions to meet each household's needs.
 
"As December begins, customers still have opportunities to find support and manage energy costs," said Bill Malee, chief customer officer, National Grid. "We're proud to host many of these events at local senior centers, ensuring customers have easy access to the support they need. Our in-person events are a great way for customers to connect with our team, learn about flexible payment options, and discover energy-saving programs that can help make a real difference this season."
 
Customers attending in-person events will have the opportunity to meet with representatives from National Grid, who will be on-site to assist with billing issues and provide information on:
  • Enrolling in National Grid's new Payment Assistance Bundle
  • Enrolling in Budget Billing
  • Enrolling in the Energy Discount Rate (for qualifying customers)
  • Scheduling home energy assessments and sharing information on other energy efficiency opportunities for homes or businesses 
These events are part of National Grid's broader commitment to affordability and reliability. Customers can also access support by calling 1-800-233-5325.
 
National Grid customers can now sign up for a new Payment Assistance Bundle. The bundle combines three solutions to make it easier for managing energy costs and paying down past due amounts over a 12-month period.
  • Deferred Payment Agreement: Spread out past-due balance into future monthly payments.
  • Automatic Monthly Payments: Automatically deduct payments from your bank account each month and avoid missing due dates.
  • Budget Plan: Break down annual energy costs into balanced monthly payments, making it easier to budget and plan expenses.
Customers interested in enrolling in the Payment Assistance Bundle can do so online by visiting ngrid.com/hereforyou, at an in-person event, or by calling 1-800-233-5325.
View Full Story

More Williamstown Stories