SIT­U­A­TION

• Doc­tors’ Hos­pi­tal (The ​“Com­pa­ny”) was a 229-bed hos­pi­tal and 50,000 square foot med­ical office build­ing locat­ed on the north side of Hous­ton serv­ing the indi­gent and work­ing poor population
• The Com­pa­ny was approx­i­mate­ly 50% owned by a group of mul­ti-cul­tur­al doctors
• The com­pa­ny received over 75% of its rev­enues from gov­ern­ment-based insur­ance programs
• Begin­ning in 2003, the Com­pa­ny began expe­ri­enc­ing declin­ing admis­sions and a shift from Medicare to Med­ic­aid man­aged care
• The own­ers were not in agree­ment on how to oper­ate the hos­pi­tal and hence the declin­ing admissions
• The declin­ing admis­sions cou­pled with reduced cash flow and a debt load of approx­i­mate­ly $40.0 MM forced the Com­pa­ny to reorganize
• Chi­ron was engaged as the Invest­ment Bank and Finan­cial Advisor

OUT­COME

• Chi­ron arranged a plan of reorganization