Buying a Hospital at a Bankruptcy Bargain Price
Public agencies rarely file for bankruptcy. A major healthcare provider saw a unique opportunity to grow their business when Valley Health System, a public hospital district, filed for Chapter 9 bankruptcy.
Our bankruptcy and healthcare team was ready and quickly jumped in to help the provider purchase one of Valley Health System's hospitals.
We worked closely and efficiently with the debtor, Valley Health System's board, bond holders, and local constituencies to negotiate a favorable deal for our client. After negotiations between the hospital and a previous potential buyer stalled, we facilitated consummation of a new deal with our client as the buyer. We helped our client take advantage of bankruptcy law provisions that provide significant legal and business value to purchasers of hospital facilities.
To the community's delight, our client has invested in the hospital's expansion, upgraded technology, and continues to run the facility as a community hospital.