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.