Hospital And Health Care
Health care is now a rapidly developing field, with changes emerging in care model innovation, digital transformation, and customer payments. A more patient-focused model is making for a challenging new landscape, especially in light of the coronavirus pandemic. On top of these challenges, the industry has become more capital-intensive than ever before, requiring substantial funding to make investments in innovative technologies and keep pace with emerging digital and changing patient trends and preferences.
An especially unfortunate consequence of the recent economic recessions has been the financial pressure experienced by private hospitals and medical centers, many of which have long traditions of charitable and community service. Declining public funding and the rising costs of providing medical care have generated severe cash flow crises for many hospitals, forcing some to seek Chapter 11 bankruptcy protection.
How We Can Help
The Togut Firm has served as lead counsel or conflicts counsel for companies in many of the New York metropolitan area’s hospital and health care bankruptcy cases, including the first and second St. Vincent’s Hospital restructurings, Our Lady of Mercy Hospital, Cabrini Medical Center, Victory Memorial Hospital, and Long Beach Memorial Hospital.
Our familiarity with the demands of complex reorganizations and our commitment to containing legal costs make our firm especially well-suited for representing struggling companies through difficult times. Keeping our billing rates 25% below market, our firm represents companies that are considering whether to pursue a restructuring, including in or out of Chapter 11. Because we have no retainer clients or institutional relationships, our law firm can act independently in the interests of the debtor and the estate without the conflicts or complications presented by preexisting affiliations with lenders or parties in interest.
The Togut Firm has achieved outstanding results in several health care restructurings by providing independent, creative, and efficient client service. Our relevant experience in this area includes:
Trident Holding Company, LLC
Co-counsel with Skadden Arps to the debtors, a Maryland-based provider of bedside diagnostic and other services (i.e., X-ray, ultrasound, and cardiac monitoring) in connection with its Chapter 11 plan of reorganization that restructured more than $750 million in liabilities.
Sound Shore Health Systems
Counsel to the purchaser, a four-hospital system, in the 363 sale of, among other things, the debtors’ two hospitals and a nursing home. The sale was approved by the Bankruptcy Court within 60 days of the commencement of the case.
Long Beach Medical Center
Counsel to the purchaser, another hospital system, in the Section 363 sale of the debtor’s hospital assets. The debtor had shut down following Hurricane Sandy, and the sale enabled our client to bring much-needed health care to the Long Beach community.
Saint Vincent’s Hospitals
Conflicts counsel to the debtors, the largest Catholic hospital system in New York state, in its first and second Chapter 11 cases (in 2005 and 2010), which, in both cases, restructured over $1 billion in liabilities.
Our Lady of Mercy Hospital
Counsel to the debtor, a Bronx hospital with over $100 million in liabilities, which was purchased by Montefiore Medical Center pursuant to a 363 sale.
Cabrini Medical Center
Counsel to the debtor, a hospital in Gramercy Park, Manhattan, with over $100 million in assets and liabilities, which was purchased at auction by an affiliate of Memorial Sloan Kettering Cancer Center.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.