Penobscot Valley Hospital files for Chapter 11 bankruptcy

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LINCOLN, Maine (WABI) - Penobscot Valley Hospital in Lincoln has filed for bankruptcy protection.

Hospital officials say it will stay open during the process which could take more than a year to be completed.

The hospital's management team expects it will eventually leave them in a stronger financial position.

In-patient admissions have decreased by 65% over the past four years.

Factors cited include the loss of the local paper mill, loss of commercial health insurance coverage and families moving from the area.

Hospital officials say they've also been hurt by the lack of Medicaid expansion and cuts to reimbursements.

No layoffs are planned.

For more information: www.pvhme.org/restructuring