INDIVIDUAL NURSING HOMES AND SMALL HEALTHCARE PROVIDER ORGANIZATIONS

HMP has been recommended by a number of large commercial lenders to act as the Trustee or Receiver in the liquidation or sale of financially distressed nursing homes and other similarly-sized healthcare providers. Most of the assignments have involved entities with a market value between $5 and $10 million.

Issues

  • Manager/Operator stopped making debt service
  • Limited reserve funds to fund operations and implement turnaround strategy
  • Staffing levels (e.g., adequacy of medical and nursing staff)
  • Concern of Medicare and Medicaid billing issues

Approach

  • Review the current situation with indenture trustee and their workout counsel
  • Assemble an appropriate team for the assignment (i.e., legal, accounting)
  • Tour the facility
  • Interview key members of the management, medical, and nursing staff
  • Evaluate current operations and financial performance
  • Prepare a written assessment of the current situation for the indenture trustee and the court
  • Implement plan identified in assessment

Results

  • Stabilized organization; conducted sale

Additional Details

  • Northern District of Georgia, Rome Division (case # 05-44617), 114-bed Nursing Home located in Jasper, Texas
  • Northern District of Alabama, Southern Division (case #2:11-cv-01509), 84-bed nursing home located in Reform, Alabama
  • Middle District of Alabama, Eastern Division (case # 3:14-cv-0059), 120-bed nursing home located in Tuskegee, Alabama
    (facility was closed prior to appointment)

Similar Assignment

  • Appointed Bankruptcy Court Examiner for Hidden Acres Manor, Middle District of Tennessee (case # 1:08‐bk‐11614), 72-bed
    nursing facility with a 30-unit apartment building located in Mt. Pleasant, TN.
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