Financial advisory and interim management for a large-scale healthcare system’s bankruptcy​

Picture this...

You’re Saint Vincent Catholic Medical Centers, an operator of numerous healthcare facilities, including a 727-bed acute care hospital, 18 licensed behavioral health and community medicine programs, 6 ambulatory care centers, a behavioral health facility, 3 nursing homes/continuing care facilities, hospice care, a home health agency, a managed care plan, and a New York State-licensed Insurance Company and a Cayman Islands-based Reinsurance Carrier. You emerge from Chapter 11 with more than $1 billion of liabilities. Eventually, you default on your debt and are facing a severe cash crisis. ​

You turn to Accordion.

The Board retains us as CRO, CFO, and other essential finance and operating roles to manage the system through a period of daunting uncertainty. We oversee bankruptcy preparation, divestiture of assets, and closure of the main campus. In post-emergence, we provide management services to operate ongoing assets to support wind-down efforts for optimal creditor recovery. Specifically, we:​

• Lead the preparation for a Chapter 11 filing, including managing the auction of non-hospital assets, facilitating the $260 million sale of the Manhattan campus, establishing a stand-alone 24/7 emergency center, generating more than $60 million in other asset sale proceeds, and negotiating agreements to maintain patient medical records per Department of Health requirements.​
• Manage communications with all key constituents: boards, physicians, staff, elected officials, unions, press, etc. Additionally, we manage relationships with more than 30 regulatory agencies involved in the hospital closure and transfer of non-hospital business. ​
• Ensure ongoing patient care and maximize the recovery of non-hospital services through our interim management team that: (a) transitioned outpatient clinics to new sponsors without disrupting patient care, (b) individually assessed each business to determine potential value, (c) negotiated significant improvement over stalking horse bids, (d) collected more than $50 million in accounts receivable by the Central Business Office, and more.​
• Stay on as Responsible Officer post-emergence and wind down the Cayman Islands Insurance Carrier, settling remaining cases for less than reserves and recovering more than $45 million for creditors. We also settle hundreds of remaining medical malpractice trust cases from the first bankruptcy, resulting in an excess of $20 million in creditors’ recovery. Lastly, we resolve $461 million of disputed claims, resulting in a reduction of 87% in settlements of allowed claims.

Your value is enhanced.

The Chapter 11 plan provides for a 100% recovery for administrative, priority creditors, and secured lenders, and a substantial recovery by the employees and pensioners. Importantly, you are able to preserve critical patientcare needs in the communities served by the hospital system. In post-emergence, the expected recovery to unsecured creditors is enhanced from 2.3% to 26.8%, an eleven-fold increase.