When a healthcare provider experiences financial or operational challenges our National Healthcare Restructuring team has the knowledge and experience to provide the most efficient solution. The American healthcare industry is rapidly changing and with such changes come challenges, particularly financial, that require the assistance of seasoned professionals. Our national healthcare restructuring practice assists clients experiencing financial or operational issues requiring strategic legal advice or seeking acquisition opportunities in this current challenging environment. We possess the legal and business acumen, gained from years of relevant experience, to provide guidance required to navigate these challenging times. Our diverse client base includes hospitals and healthcare systems (for-profit and tax-exempt), long-term care facilities, surgicenters, imaging centers, physician practices and ventures, investors, and healthcare technology companies.

Our services include:

• Refinancings and recapitalizations
• Negotiation of new arrangements with payors, lenders, landlords, vendors, unions and other third parties
• Mergers, acquisitions, dispositions, joint ventures, and other transactions related to a reorganization
• Reorganizations and business protection, including consensual, out-of-court restructurings and chapter 11 filings

Our team draws primarily upon the experience of our Business Restructuring Department and Healthcare Practice Group, both of which provide services nationwide. The team is also able to call upon other relevant practice areas to provide clients with a full range of services to address complex and high-stakes business and legal issues. We understand the healthcare marketplace and the various factors that impact the financial and operational viability of healthcare companies. Our experience working with healthcare providers to address problems – including substantial experience assisting distressed healthcare providers through the chapter 11 process – enables us to identify and implement reorganization action plans. We also recognize the need to work effectively with a client's other advisors, creating a team environment resulting in practical and timely solutions.

Representative healthcare restructuring projects include the following:

Hospital Representations

• Forum Health et al. (U.S. Bankruptcy Court, N.D. of Ohio). Primary healthcare provider based in Youngstown, Ohio, with over $100 million of secured debt. Resulted in a successful sale to Community Health Systems and continuing operation of the hospital facilities.
• Representation of a hospital in the sale of its home health care business.
• Representation of a West Virginia-based hospital in a substantial out-of-court restructuring.
• Representation of secured lender for Florida-based critical access hospital.
• Hawaii Medical Center, LLC, et al. (U.S. Bankruptcy Court, Hawaii). Primary healthcare provider located in Honolulu, Hawaii, with over $50 million of secured debt. Resulted in successful confirmation of a plan of reorganization. Subsequently re-filed chapter 11 resulting in hospital facilities being acquired by St. Francis Healthcare System of Hawaii.
• Cheboygan Memorial Hospital (U.S. Bankruptcy Court, Michigan). Critical care access hospital located in Cheboygan Michigan. Resulted in successful sale to McLaren Health Care and continuing operation of the hospital facilities.
• Pontiac General Hospital and Medical Center, d/b/a North Oakland Medical Center, et al. (U.S. Bankruptcy Court, Michigan). Representation of creditors' committee, including participation in negotiations surrounding sale of the hospital facilities, and, subsequently, the liquidating trustee, assisting in the recovery of remaining assets and distribution to general unsecured creditors.
• Bucyrus Community Hospital, et al. (U.S. Bankruptcy Court, Ohio). Critical care access hospital located in Bucyrus, Ohio. Resulted in successful sale to Galion Community Hospital, Avita Healthcare System and continuing operation of the hospital facilities.
• Twin City Hospital (U.S. Bankruptcy Court, Ohio). Critical care access hospital located in Dennison, Ohio. Resulted in successful sale to Franciscan Services Corporation and continuing operation of the hospital facilities.

Long-Term Care Facility Representations

• South Franklin Circle (U.S. Bankruptcy Court, Ohio). Continuing care retirement community located in Bainbridge Township, Ohio. Resulted in successful confirmation of chapter 11 plan of reorganization.
• Franciscan Communities St. Mary’s of the Woods, Inc. (U.S. Bankruptcy Court, Ohio). Representation of creditors’ committee, including negotiation with parties in interest to secure distribution to unsecured creditors, and maintain operation of facility.
• Representation of two Ohio-based distressed skilled nursing facilities in the successful sale and transition of operations.

Medical Facility Representations

• Representations of separate multi-location laser surgery centers in successful debt restructuring and in a wind down that enabled the owners to avoid personal liability
• Representation of a plastic surgery center in the wind down of operations and transition of practice to another facility
• Representation of a medical laboratory in forbearance agreement with bank lender, obtaining replacement of its bank line of credit, exploration of strategic alternatives and representation of its company in its ultimate sale to investor group

Relevant Client Alerts

• “Critical Times for Critical Access Hospitals”
• “Hospital Management During Tough Times – Six Prescriptions for Financial Health”
• “Article 9 Sales – The New 363”