Delivered a successful out-of-court wind down of physician practices

Physician-owned 60+ site pain practice and diagnostic laboratory

Gibbins Advisors professionals* appointed Chief Restructuring Officer to deliver an orderly, out of court wind down that successfully transitioned clinical operations and delivered a full recovery to secured lenders.

TEAM Ronald Winters, Clare Moylan, Ginger Smith, Tyler Brasher

Physician Practices Physician-owned 60+ clinics Chief Restructuring Officer Wind-down

Situation Overview

Multi-state pain management physician practice including a captive toxicology lab business. Following a period of rapid growth, the company faced financial woes partially resulting from government actions regarding allegations of over-utilization of urine tests for patients of its clinics.

Images are for illustrative purposes only.

Summary

Sector:
Pain management practices; Toxicology lab

Approx. Size:
~60 sites

Our role:
Chief Restructuring Officer

Key Results

• Facilitated an efficient, orderly wind down of the business including full repayment of senior lenders and relief on doctors’ personal guarantees

• Successfully managed unsecured creditors relationships to wind down and avoid a bankruptcy filing

• Practice operations were transitioned to local providers to provide continuity of care

Role

Gibbins Advisors professionals* held key interim management roles and were originally engaged to conduct a Business Assessment in order to:

• Diagnose drivers of business performance, including evaluating the 60-clinic portfolio

• Determine the feasibility of a turnaround, given very limited timeframe on cashflow

In light of liquidity limitations, government actions and liability concerns, the Board decided to liquidate the business. Gibbins Advisors was appointed Chief Restructuring Officer to wind down the operations.

*Role performed by four GA professionals while working for another firm

Approach

• Conducted detailed portfolio analysis as well as review of corporate structures and business model

• Provided Options Assessment for the Board

• Supported the process to follow through an unsolicited offer from PE-backed platform company which was ultimately withdrawn

Key Accomplishments

Managed the successful orderly out-of-court wind-down and sale of the business assets:

• Sold certain practices and valuable assets in a series of transactions

• Corporate staff transitioned to buyer of multi-location offices

• Secured lender obligations fully satisfied with successful negotiations to retain liquidity for wind-down process during pay down process. 

• Generally, patient records of sold practices transitioned to buyers; long-term / regulatorily-complaint storage of other patient records arranged

• Wind up of business including county, state and federal tax returns and compliance with state and patient notification procedures in 13 states

Impact at a Glance