Gordian Group was engaged, through its joint-venture Gordian-Dynamis Solutions LLC, to develop alternative strategies for Interfaith Medical Center in advance of a potential closure or funding shortfall.
Case Study
Interfaith Medical Center
CLIENT: Interfaith Medical Center (“IMC” or the “Debtor”)
Services
Restructuring & Debt AdvisoryIndustries
Healthcare & MedicalBusiness Profiles
Situation
IMC is a multi-site community teaching health care system, providing a wide range of medical, surgical, gynecological, dental, psychiatric, pediatric, and other services. The newly-modernized Hospital operates 287 beds and an ambulatory care network of 16 clinics serving Central Brooklyn and Bushwick-Williamsburg.
On December 2, 2012, due to liabilities resulting from adverse cost dynamics within the healthcare industry, IMC filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court, Eastern District of New York.
Engagement
In April 2013, Gordian Group, LLC, through its joint-venture Gordian-Dynamis Solutions LLC (“GDS”), an advisory firm focused on designing, implementing, and financing healthy villages and a preferred vendor of the Dormitory Authority of the State of New York (“DASNY”), was engaged by the Debtor.
The Debtor retained Mr. John Leech, GDS Managing Director, as Chief Restructuring Officer and GDS as Restructuring Advisors. Under the pretense of expected closure and due to the lack of probable funding sources, GDS was tasked with the development of alternative “reuse” plans for the hospital facility.
Specifically, GDS was to provide IMC’s Board of Directors with alternative plans which would (i) help facilitate the continued delivery of the needed healthcare services, (ii) lower net expenditures, and (iii) improve the overall health status of the served Central Brooklyn and Bushwick-Williamsburg populations, all the while preserving the tax-exempt status of the bonds financing the facilities.
Outcome
GDS successfully completed the design of the relevant portions of the alternative “reuse” plan, which was very important to accomplish since, right up until the last, it appeared problematic that Interfaith Medical Center would keep its doors open as a full-service hospital. While Interfaith Medical Center achieved its goal of remaining funded and open, it was of great value to the estate that Gordian-Dynamis Solutions’ reuse alternative plan was available as an option in the absence of additional funding.