Secured Commerical Lenders to Hospitals and Hospital System
Creditor's Financial Advisor
HMP has been retained by a number of large commercial lenders to act as their advisor in conjunction with the workout of secured obligations owed by both investor-owned and not-for-profit hospitals and health systems.
These assignments have included debt restructurings both in and out of bankruptcy.
Issues
- Debt covenant compliance
- Adequacy of the debtor hospital’s business plans and management and their potential impact on the institution’s ability to service the debt in question
- Quality of clinical operations, including the adequacy of medical and nursing staffs
- Medicare and/or Medicaid fraud and abuse
Approach
- Review the current situation with the secured lender’s workout team.
- Have a managing director who is also an experienced hospital CEO tour the facility, interview key members of the Hospital management, medical staff and board of directors, and evaluate current business plans and financial performance.
- Prepare a written assessment of the current situation for the secured lender, including specific action steps to collect or better secure the funds lent.
Results