By Staff
Penobscot Valley Hospital, a 25-bed hospital in Lincoln that sought bankruptcy protection almost two years ago, on Friday afternoon said the critical access facility has completed a Chapter 11 financial restructuring process and emerged from bankruptcy.
Penobscot Valley remained open and did not lay off staff during the process. The hospital employs 175 people in the town of 5,000, about 50 miles north of Bangor and 30 miles south of Millinocket.
The 2015 closing of Lincoln’s major employer, the Lincoln Paper and Tissue mill, and the state’s previous failures to seek federal Medicaid expansion funds had precipitated the Chapter 11 filing in January 2019.