Healthcare Restructuring Group

Pachulski Stang Ziehl & Jones LLP has developed a national healthcare insolvency specialty practice, representing a variety of restructuring participants, including debtors, governmental and private creditors, trustees, examiners, creditors committees, patient care ombudsmen, asset acquirers and sellers, both within the contexts of court proceedings (such as chapter 11 or chapter 9 bankruptcy cases) and out-of-court restructurings and workouts.  The firm’s Healthcare Restructuring Group (HRG) has represented providers such as for- and non-profit hospitals, surgical centers, assisted-living facility operators, home health agencies and medical groups, hospital districts and health plans. The firm has represented creditors' committees in the chapter 11 cases of hospital operators, skilled nursing facilities, physician groups and other healthcare-related entities. The firm represents parties interested in the sale or acquisition of healthcare-related entities and assets and also handles healthcare-related real estate transactional matters.  HRG’s hospital-related experience is particularly significant because practice group attorneys are knowledgeable about issues of interest to both debtor and creditor constituencies in hospital bankruptcy cases.    

HRG is led by Samuel R. Maizel, a nationally recognized expert regarding the specialized restructuring, statutory, and regulatory issues that arise in the reorganizations of hospitals and other healthcare industry entities. He is widely published, has spoken at more than 175 programs in the past 15 years, and has been quoted on radio and television.

Experience representing debtors. The firm has significant expertise in the reorganization of hospitals and other healthcare industry companies and is keenly aware of the pressure points, negotiating strategies and exit options available to potential debtors in the healthcare industry. Healthcare bankruptcy cases where the firm is currently or has in the past represented a debtor include Victor Valley Community Hospital, Gordian Medical, Triad Healthcare (hospital), San Fernando (Mission) Community Hospital, S&B Surgery Center, Sunwest Management, Inc. (a national assisted living facility operator), Health Source Medical Group, and Health Plan of the Redwoods.

Experience representing creditors' committees. The firm's reputation as creditors' committee counsel is built on its track record of taking control of cases and moving them in a direction favorable to unsecured creditors. Currently, the firm represents the committees in the bankruptcy cases of Pacifica Hospital of the Valley and Valley Health Systems (both hospital operator cases). Previously, the firm has represented committees in numerous chapter 11 cases nationwide in healthcare industry cases such as Palm Drive Health Care District, Pleasant Care Corporation (skilled nursing facility operator), Hawaii Medical Center (hospital), West Contra Costa Health Care District (a hospital operator), Mariner Post-Acute Network, Associated Physicians of St. Johns, and Functional Restoration Medical Centers.

Transactional and real estate work. The firm also has experience in healthcare transactional and real estate work. For example, the firm has represented a real estate investment trust (REIT) in providing construction financing for the hospital portion of a hospital and medical office building complex and in the subsequent purchase and lease back of the complex. The firm also handled the purchase of a $12.5 million medical office building.

Corporate, securities, and transactional issues. Finally, the firm has substantial experience with the corporate, securities, and transactional issues facing healthcare providers outside of the insolvency arena. For example, the firm assisted the national operator of healthcare facilities in connection with its $40 million initial public offering, as well as its $80 million secondary debt offering; represented both issuers and underwriters engaged in the offering and sale of tens of millions of dollars in hospital revenue bonds; has handled the acquisition of hospitals, clinics, and other facilities on behalf of purchasers; prepared private placement materials for physician groups seeking to raise capital to acquire medical equipment; advised a public healthcare company regarding its disengagement from a management contract for its California facilities; and represented healthcare clients seeking secured financing from banks and other lending institutions.