Graves-Gilbert Clinic (GGC) has received court approval of its plan to exit Chapter 11 bankruptcy.
The clinic filed for Chapter 11 bankruptcy in December 2022 following a medical malpractice lawsuit totaling more than $21 million in damages.
Chapter 11 bankruptcy is often filed by a company that does not have the financial means to pay their debts. Under Chapter 11, businesses are allowed to maintain their work, but must establish a deal to repay their debts.
The approved reorganization plan will allow GGC the opportunity to modernize its operational and financial models to help protect against potential future liability.
Under the exit plan, GGC will pay its vendors and establish a fund to be shared among current tort claimants.
According to a press release, the amounts to be distributed exceed what is required by bankruptcy law.
These terms will allow GGC to continue to provide high-quality, low-cost healthcare to the South-Central Kentucky community.
“Throughout the last 12 months, The Graves-Gilbert Clinic maintained important medical care thanks in part to the tireless work of our legal and administrative teams,” said Dr. Jerry Roy, President. “It is important we ensure there are no disruptions in patient care, and the exit plan approval provides that opportunity.”
Graves-Gilbert Clinic is one of South Central Kentucky’s largest employers and cares for more than one million patients annually.
In a news release from GGC, company leaders state the clinic will continue its strategic focus on quality, accessible, consistent and valued patient care and experience. Additionally, GGC is committed to working with regional employers and health plans to ensure costs are manageable.
“The Graves-Gilbert Clinic is pleased to be able to continue to be a key provider of healthcare in South-Central Kentucky,” said Michael D’Eramo, CEO. “We will act on the lessons learned through this process and, going forward, how we can ensure high value medical care.”
GGC welcomed new CEO, Michael D’Eramo, in November 2023. D’Eramo most recently served the Chief Administrative Office at the Toledo Clinic and has more than 30 years experience in physician management.
Graves-Gilbert Clinic opened its doors in 1937. For more information, visit gravesgilbert.com.
