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Case Study

Healthcare Restructuring 

A healthcare operating company with 108 facilities in 12 states, faced financial challenges in 2 states with a total of 33 facilities. This was due to the costs of defending numerous personal injury lawsuits. Tom Patterson was engaged as CFO to manage a Chapter 11 bankruptcy filing.

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Tom Patterson
Partner

Tom Patterson is a financial executive with over three decades of experience in an array of industries. He has broad expertise in finance, accounting, strategy, and mergers and acquisitions. Tom has a significant background in complex business transactions, having served as the CFO and Chief Administrative Officer at two industry-leading organizations in healthcare and real estate. He strives to be collaborative and promote teamwork and communication throughout organizations  he serves, generating value by partnering with operations to achieve measurable performance improvement.

Solutions

Tom created, led, developed, and executed several key initiatives to help reach a successful resolution, which included:
 

  • The company’s bankruptcy attorneys filed Chapter 11 bankruptcy protection for all 33 partnerships operating facilities in the 2 affected states and Tom negotiated Debtor-in-Possession financing with a large commercial bank to provide working capital financing for Debtors during the bankruptcy.
     

  • Implemented a 13-week cash flow forecasting system.
     

  • Provided monthly reporting to the bankruptcy court and weekly reporting to the lender.
     

  • Maintained positive working relationships with vendors, ensuring the continuation of services and supplies to both Debtor and Non-Debtor facilities within the portfolio, renegotiating payment terms as needed. 
     

  • The company identified new operators for all facilities and Tom provided due diligence materials to facilitate their underwriting and valuation process.   
     

  • Worked with legal counsel to negotiate Operations Transfer Agreements with the new operators.
     

  • Coordinated the seamless transfer of all facility employees to the new operators, ensuring continuity of employee tenure, health insurance, and other benefits coverage.
     

  • Served as the primary point of contact to ensure effective communication of information to internal and external parties, including attorneys, financial advisors, lenders, and landlords. 

Results

  • The Chapter 11 filings enabled the partnerships to remain operational, pay employees and vendors, and continue to care for 3,000 residents during the restructuring process.
     

  • The facilities were successfully transitioned to new operating companies, ensuring a smooth experience for both residents and employees. 

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