Morrison Hospital Association files for bankruptcy

Morrison Hospital Association, a nonprofit senior care provider in northern New Hampshire, filed for Chapter 11 bankruptcy protection April 10, citing mounting debt — including a nearly $23 million federal loan — and lingering financial effects from the COVID-19 pandemic.

The organization owes about $22.99 million to the U.S. Department of Agriculture for a loan that financed development of its Summit by Morrison senior living campus, which opened in 2018.

While the Morrison Hospital Association has continued to meet day-to-day obligations, including payroll and resident care, it said servicing the USDA debt “has not been manageable,” prompting the Chapter 11 filing as it seeks to restructure that obligation.

In court filings, the organization said its financial distress stemmed from “a series of financially disadvantageous roadblocks” during the Summit’s rollout, along with broader pressures facing the health care sector following the pandemic.

The organization also owes about $847,000 to Service Credit Union, the remaining balance on a roughly $2.7 million loan used to renovate its skilled nursing and assisted living facility at 6 Terrace St.

Both lenders hold secured interests in the organization’s real estate and other assets, including its Whitefield campuses and revenue streams.

Beyond those debts, the nonprofit listed its 20 largest unsecured creditors, led by the Town of Whitefield tax collector, totaling about $394,853, and the town’s water department, totaling about $38,838. Other major creditors include Weeks Medical Center, Eversource, Performance Foodservice and Stiles Fuel Co., as well as staffing agencies and medical suppliers.

Morrison employs 96 full-time workers, eight part-time employees and 54 per diem staff, for a total workforce of 158. Of those, 143 are hourly employees, and 15 are salaried.

Payroll averages about $114,800 per week, with roughly $82,000 tied to obligations incurred before the bankruptcy filing. The organization also reported about $217,000 in accrued unused employee leave, along with ongoing payroll taxes, benefits and retirement contributions of about $1,100 per week.

Morrison operates a 57-bed skilled nursing facility and a 20-unit assisted living residence on its Terrace Street campus, along with the Summit senior living community, which includes independent living, assisted living and memory care.

As part of the bankruptcy case, the organization is seeking court approval to continue using cash collateral — funds tied to its secured loans — to maintain operations. It said access to that cash is essential to pay employees, vendors and utilities and avoid an immediate shutdown.

The debtor has proposed monthly payments of $5,100 to the USDA and $2,900 to Service Credit Union, along with replacement liens and financial reporting, as it works to reorganize its finances.

When it opened in 2018, The Summit by Morrison was billed as a $25 million investment to expand senior housing options in the North Country.

The 85-unit community includes 47 independent living units — a mix of cottages and apartments — along with 24 assisted living apartments and 12 memory care studios. At the time, it was described as the only facility of its kind in the region.

The project was designed to address growing demand in Coos County, where the population is rapidly aging, and many seniors had previously been forced to relocate outside the region for care.

Funded primarily through low-interest USDA rural development loans, the project was envisioned as a cornerstone of Morrison’s long-term sustainability, allowing residents to transition between levels of care without leaving the community.

Leaders also highlighted expected economic benefits, including about 30 new jobs and strong early demand, projected to bring the facility near full occupancy within 18 months.

At a ribbon-cutting ceremony, board president Brian Fogg described the project as central to the organization’s mission.

“Summit’s opening and its future success are the cornerstones of our plans to continue the important charitable mission of the Morrison — to provide care and a home for our parents, our spouses and maybe even for ourselves,” Fogg said.

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