Volume 1, Number 1
Agenda for the 2004 Annual Spring Meeting
Here's what's coming up in the Committee's Educational Session...
Panel
Presentation on Restructuring Hospitals
The
ABI Health Care Insolvency Committee will present a panel presentation
on Saturday, April 17, from 8:00-9:30 a.m. at the 2004 Annual Spring Meeting,
April 15-18 in Washington, D.C. The panel presentation will be "Restructuring
a financially troubled hospital under chapter 11 without a sale or merger
- a multi-perspective case study." Attendees will also hear an update
on the status of the Second Edition of the Health Care Insolvency Manual.
Panelists will include:
John
R. ("Jack"') Weider, Moderator
Harter, Secrest & Emery LLP
Rochester, N.Y.
Jeffrey
Cohen
First Albany Corporation
Albany N.Y.
David
Speltz
Speltz & Weis LLC
Boston, MA and Chicago, Ill.
William
S. Thomas, Jr.
Nixon Peabody LLP
New York and Rochester, N.Y.
The panel includes a lawyer for the debtor, an investment banker, a crisis manager and CEO, and a lawyer for secured creditors in the Crouse Hospital case. They will discuss the strategies and mechanisms that have been successfully used to address the needs of the myriad of constituencies that are typically involved in a major hospital reorganization including issues such as:
•
Critical vendors such as manufacturers of patent drugs and
other specialty supplies.
• Several series of bonds sharing the same collateral pool
but with some series enhanced and some un-enhanced.
• Financing a turnaround and elements of a turnaround plan.
• Maintaining the support of the medical community as well as
the community at large and major donors.
• Medicare recoupment claims.
• Self-insured medical malpractice liability claims.
• Self-insured workers compensation problems.
• Future access to capital markets for funding capex - use of
unenhanced, high yield, tax-exempt bonds.
• Assumption of key executory contracts, including one
for medical residents.
• Union support for and contribution to the plan.
• Not-for-profit corporate governance issues.
• Management and operational issues.
• Plan negotiations and development.
Other conference events include:
• Featured
luncheon speaker Tim Russert - managing editor/moderator of
"Meet the Press", political analyst for both
"NBC Nightly News" and the "Today" program, anchor
of CNBC's "The Tim
Russert Show", and NBC News Washington
bureau chief.
•
The Eighth Annual Great Debates, covering the topics:
Resolved:
Abolish the Doctrine of Necessity
Resolved: Bankruptcy Judges Are Too Protective of Consumer Debtors
Resolved: DIP Lenders Must Be Restricted
•
Final Night Gala Dinner (benefiting the ABI Endowment Fund) with
Blood, Sweat & Tears, whose hits include
"Spinning Wheel" and "You've Made Me So Very Happy".
The “Charitable
Trust” Doctrine: Lessons and Aftermath
of Banner Health
Contributing Editor: Harold L. Kaplan
Also Written by: Patrick S. Coffey and Rosemary G. Feit
In recent
years, nonprofit health care entities have experienced increased and highly
publicized state attorney general scrutiny of, and sometimes interference
with, the sales of facilities, use of assets and other health care transactions.
Traditionally, state attorney general review of corporate health care
transactions has been reserved for nonprofit-to-for-profit asset conversions
and instances of regulatory oversight of transactions involving outright
self-dealing or ultra vires conduct. Of late, however, the nonprofit health
care transactions that have drawn fire from state officials involve straightforward
asset transfers to other nonprofit corporations and, in particular, transactions
where a nonprofit health care corporation seeks to close a struggling
local hospital, merge facilities, exit a community or entirely divest
of a portfolio of in-state holdings. Even more recently, state attorneys
general (AGs) have objected to specific expenditures by nonprofit corporations
(including fees for hiring bankruptcy professionals) and have suggested
that nonprofit corporation funds may need to be expended in accordance
with charitable mission objectives rather than made available for creditor
recoveries.
To
read the full article, click here