The state of Vermont has advanced Springfield Hospital $800,000 to prevent it from closing this week and the hospital has announced job and wage cuts.

Agency of Human Services Secretary Al Gobeille says the Scott administration worked with legislative leaders to save the hospital this week. Springfield Hospital has been struggling financially for months and a new leadership team is trying to stabilize it. Gobeille says the state used general funds to advance money to the hospital, which will be paid back by June 2020. The cash infusion will provide more time for the hospital to restructure and regain it's financial footing.

"It's a very serious situation. If we had not stepped in the hospital would have closed its doors Wednesday of this week," Gobeille said. "This is not gonna be easy. The hospital will not be able to operate in a status quo situation. There will have to be changes to what they do and so we want to make sure they're thoughtful."

Gobeille says a forensic audit is underway and the hospital is facing some structural changes.

The loan comes as the hospital braces for what administrators called a "restructuring of operations." In a statement Friday, hospital officials said approximately 27 positions will be eliminated -- less than six percent of the total workforce. There will also be a 10 percent cut in wages for salaried positions, 4 percent for hourly staff, and a negotiated amount from contracted workers.

“These decisions are incredibly difficult, and we have worked hard to limit staffing reductions as we begin the turnaround necessary to stabilize this organization so that we can provide great care now and in the future,” said SMCS board chair George Lamb in a statement. “Though we know these changes are necessary, we deeply regret the personal impact of this reduction. We are grateful to the state, our community.

Hospital officials say they are also pursuing the possibility of filing for Chapter 11 reorganization to help stabilize the situatio.