Saint Vincent Catholic Medical Centers

Situation

  • Engaged to guide the historic Saint Vincent Catholic Medical Centers of New York through restructuring and subsequent Chapter 11 bankruptcy
  • The health system’s financial management did not adapt to the institution’s growth. The medical system first went into bankruptcy in 2005, only to emerge in 2007 saddled with debt that would ultimately force the entity back into bankruptcy protection

Execution and Results

  • Led communications with all key constituents: Unions, physicians, elected and state officials, press, etc.
  • Quickly identified and contained cash burn to allow for orderly disposition of assets
  • Directed the efforts to find a new sponsor to keep the hospital open. When unable to find a new sponsor, we proceeded with the orderly and safe closure of the hospital
  • Prepared a closure plan for the hospital and with the assistance of the medical staff safely discharged all patients
  • Evaluated the specific factors affecting the businesses, focusing on state and city health regulations, regulatory approval hurdles, patient transition requirements and key targets given the regulatory and business environment
  • Prepared an extensive plan for maintaining continued patient care and safety during the divestiture process
  • Negotiated significant improvement over stalking horse bids, including higher prices, assumption of major liabilities, and continued employment for thousands of employees
  • Achieved advantageous deal structures/combinations to maximize asset value and minimize risks with sensitive business lines
  • Managed a wide array of human resource issues, including negotiating wage concessions, managing the headcount reduction process, terminating the defined benefit pension plan and the wind down of employee benefit plans to avoid or reduce significant exposures to various employee-related claims
  • Negotiated agreements to store over 300,000 cubic feet of patient medical records along with electronic patient health information for the legally required time periods to ensure access for patients for years to come
  • Managed the sale of key real estate generating over $260 million in proceeds

ToneyKorf is a leading business advisory firm of experience-based professionals who specialize in creating value and restoring performance at every stage of the business life-cycle.

To speak with ToneyKorf about your challenges... Contact us today!

Business News

After more than seven years, Bankruptcy Beat is going off the air as we transition to our new WSJ Pr ...

Read about Relativity Media, China fishery and more on the final Daily Docket. ...

Read about AstroTurf's bankruptcy and more on Daily Docket. ...

The law firm that has bailed colleges and universities out of NCAA athletic-compliance trouble is ge ...

Read about McKinsey & Co. and more on Daily Docket. ...

Read about the bankruptcy of GoPro competitor iON Worldwide (and more) on Daily Docket. ...

Check out the latest professional bankruptcy moves on Coming and Going Concerns. ...

Read about the bankruptcy of John Q. Hammons hotels and more on Daily Docket. ...

Gawker is seeking to launch a sale (and more) on next week's bankruptcy docket. ...

Read about Garlock and more on Daily Docket. ...

Posted in Clients.