Appointed Receiver to wind down the hospital and realize assets
Community Memorial Hospital (Ohio)
After a $25M fraud and severe cash shortages forced the sudden closure of the hospital, Gibbins Advisors worked as Receiver to stabilize the situation, drive asset recoveries, engage competing stakeholders, and protect patients’ medical records.
Situation Overview
Community Memorial Hospital, a Critical Access Hospital in Ohio, faced devastating financial collapse. Severe cash distress caused by a $25 million loss from a fraudulent lab scheme by former management, a failed EMR conversion, and other challenges ultimately led to halting clinical services and terminating nearly all employees. The hospital was also accused of withholding nearly $3 million in employee retirement contributions that should have gone to Ohio Public Employees Retirement System (OPERS).
Images are for illustrative purposes only.
Summary
Sector:
Rural, government owned critical access hospital
Approx. Size:
25 beds
Our role:
Phase 1 - Diagnostic
Phase 2 - Receiver
Key Results
Managed very tight liquidity for a closed hospital through to the successful sale of key assets, ultimately positioning to deliver a return to creditors.
Role
After conducting a rapid options assessment as Financial Advisor to the Hospital, it was agreed that the best path was for OPERS to nominate Ronald Winters of Gibbins Advisors as Receiver to secure and liquidate assets for the benefit of creditors and to protect patient records.
Approach
Conducted a rapid business review, weighing bankruptcy versus alternate pathways
Took control of hospital assets, including real property, personal property and patient records
Coordinated multiple real estate sales and oversaw online auction of personal property to maximize recoveries for creditors
Key Accomplishments
Managed competing interests between various parties with alleged stakes in the collateral
Successfully sold most of the personal property in an online auction
Sold various parcels of real estate
Led a process to provide access to vital patient medical records before such information was destroyed or abandoned.
Creditors expected to see a meaningful return
