Things look dire for the NHSC (Plainfield Health Center)

Logo of the NHSC, known as the Plainfield Health Center.

The clinic that Plainfielders still refer to as the Plainfield Health Center (officially the Neighborhood Health Services Corporation for several years now) is facing a series of critical challenges that -- if not surmounted -- could lead to its closure.
As many are aware, the NHSC has been operating in bankruptcy for several years.
Things have gotten so critical with the Center's finances that CEO Rudine Smith was terminated by the court-appointed trustee on April 1st.
Meanwhile, the Center is facing an apparent deadline in the next couple of weeks to pay off a $750,000 loan by the state's medical facilities financing agency that was granted after arm-wrestling the state and the IRS last November (there is an IRS lien against the property that needed to be subordinated in order for the loan to be floated).
The loan was to pay for the trustee's services (they are professionals and compensated as such).
According to the terms of the loan, it must be repaid no later than four months after the execution of the loan agreement. If not repaid at that time, the court is to conduct an auction of the property no later than six months from the date of the executed loan agreement.
Bad as this news is, there is more.
Another source of funding is known as the "330 program", payments by a federal agency that go toward payroll is also in trouble.
Because the Center has taken an early drawdown on these monies, it may be unable to meet the May payroll (including payroll taxes) unless rescued by the agency, which again puts it in danger of being forced to close.
There is also potential danger in the Center's "340B prescription program". This program generates needed income for the Center.
However, it was suspended after there was an unpaid liability of about $100,000. Although a new vendor was found, the situation still remains precarious.
At the March 28 status hearing, the "trustee in possession” confirmed that there was no identified buyer at the time of the hearing and that auctioning of the building is a strong possibility and would definitely result in closure of the Center.
With all of this going on, it becomes harder and harder to see a path that will save the Center.
If no buyer is found by May 9 (the date of the next status conference) and/or the $750,000 loan is not repaid, it seems increasingly likely that the Center will be forced to close.

This would be a tragedy for all those who rely on the Health Center as their primary healthcare provider.

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  -- Dan Damon [follow]

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