Receiverships are court appointments granted to qualified individuals (or entities) to oversee financially troubled businesses, for purposes of restructuring or selling the business. With proven experience managing and turning around all types of distressed healthcare businesses, HMP is regularly appointed to serve as court-appointed receiver.
When appointed, HMP quickly assesses patient/resident care, marshals the business’s cash and communicates with all stakeholders, including the State and Federal regulators. Once stabilized, HMP determines the business’s financial position (both short-term and longterm) and market share, among its competition. Ultimately, HMP designs and executes a restructuring plan, which often involves the sale of the business’s assets.
To market-test a sale price for the receivership estate assets, HMP seeks court approval to utilize a ‘stalking horse’ methodology to sell the business’s assets. HMP has a refined approach for its receiverships that has generated substantial recoveries for its receivership estates.
Key statistics over the last five years are:
- 16 receivership appointments in last five years
- Appointed by Federal and State Courts in six states
- Average of 13.4 months from appointment to sale of assets
- Stalking Horse auction sales increases from $35,500,000 initial LOIs to $52,478,000 final auction prices