MORGANTOWN, W.Va. -- Fairmont General Hospital announced Friday it will file for Chapter 11 bankruptcy protection next week in an attempt to restructure labor contracts and long-term debts, a move that a spokeswoman says was demanded by both of its potential strategic partners.
The hospital has looking for a partner since December 2011, but spokeswoman Katelyn Mock said it has not yet settled on one. However, she said, "each potential partner had identified that this is necessary."
Restructuring would let Fairmont General prepare for merger negotiations "from a position of strength," she said.
The hospital would not immediately release information about its debts and assets, but those figures will be outlined in the filing, expected Tuesday in federal bankruptcy court.
In a press release, President and Chief Executive Officer Robert Marquardt said bankruptcy "is necessary to make us financially and operationally stronger and to pave a smoother transition when we do find the right partner."
The hospital was founded in 1939, and employs some 700 physicians, nurses and other personnel.
More than 300 are represented by Service Employees International Union District 1199. Executive Vice President Kathy McCormick said the union is committed to working with management to preserve quality care and services but urged management to discuss the challenges with the rank-and-file.
"Not all of the answers or the best ideas come from the boardroom," McCormick said. "If hospital executives are as committed to the future of Fairmont General Hospital as the employees are, they should listen to what workers have to say as well."