New Vision Health, LLC

Receiver for parent company of two hospitals with total revenue of $70MM.

Situation

The unique complexity of this case involved ensuring quality medical care through the Patient Care/Safety experts and preserving the assets through the Receiver, which could only be accomplished with a strong collaborative effort between the parties.

The prolonged financial distress and Chapter 11 bankruptcy of two operating hospitals necessitated the appointment of a Patient Care Ombudsman (PCO) to monitor and report to the court as well ensure patient care and safety. All parties with a vested interest in the hospitals relied heavily on the reports from the PCO, Jerry Seelig with Seelig+Cussigh “S+C”, as they determined the feasibility of the hospitals operating on their own while providing the mandated level of patient care and safety. Ultimately, it was determined that neither hospital could not operate on their own and therefore the hospitals would need to transition to a new owner or completely close.

With the future of the hospitals lingering and valuable assets at stake, a Receiver was appointed to protect the security interest while determining whether to transition or close the hospitals. Resolute Commercial Services, LLC, by and through Jeremiah Foster, was appointed as Receiver and immediately facilitated an efficient takeover of both hospitals.

 

Demand

This situation demanded the combined knowledge and experience of the Patient Care/Safety Experts and Receiverto uphold patient privacy, maintain continuity of care, and preserve the assets while operating both hospitals, each of which had a daily average of 40 emergency room visits and 5-10 in-hospital patients per hospital. Protecting the assets of each hospital, which included: well stocked pharmacies, full-service laboratories, a wide range of imaging equipment including nuclear medicine, X-ray, CT scan, MRI, and ultrasound, made this situation unique due to the extensive safety precautions, on-going equipment maintenance, as well as the mandate to meet rules and regulations.

 

Result

After eight days of hospital operations, it was determined that the hospitals must close. Resolute then strategically decommissioned all services and worked with the Patient Care/Safety Experts to continue to store securely the more than 250,000 patient records. This joint effort resulted in the successful collection of outstanding A/R totaling more than $5MM, the sale of all FF&E for the benefit of the creditors, a patient care wind down that met State regulations, and complete avoidance of costly regulatory fines.