Hospitals to file bankruptcy

The Bamberg, Barnwell and Allendale County Hospitals have agreed in concept to formally seek adjustment of their individual financial obligations under Chapter 9 of the U.S. Code. This approach will enable the hospitals to collectively, individually and permanently settle their existing financial obligations in an organized and expedited manner.

The Chapter 9 restructuring petitions are expected to be filed in the next several weeks. However, the hospitals expect to contact their major creditor groups in an effort to reach an agreement on a debt adjustment plan prior to filing the pre-packed restructuring petitions.

The planned financial restructuring of the Hospitals’ obligations is a continuation of the process previously announced by Healthcare Management Partners, LLC (“HMP”) and Dobbs Equity Partners, LLC (“Dobbs”) to acquire the three existing hospitals’ operations and construct a new “State-of-the- Art” regional hospital system as part of the creation of an integrated healthcare delivery system for the tri-county region.

The Memphis, TN-based Dobbs has been investing in promising businesses since the 1920’s, including a wide range of healthcare initiatives such as hospitals and managed care organizations. HMP, with five offices in the United States and a leadership team composed of experienced healthcare executive officers, has been providing exceptional hospital and health system management for decades.

“Healthcare Management Partners looks forward to working with each county along with coworkers and medical staffs at the hospitals, to establish a modern regional health system”, said Michael Morgan, Partner and Managing Director. Mr. Morgan will direct the current management of the three hospitals, the Chapter 9 restructuring of each of the three hospitals, construction of the new hospital and formation of the new health system which will be called Tri-County Regional Health System (TCRHS). Morgan added, “Our due diligence process for the acquisition of the three hospitals is complete and we are undertaking a formal plan to legally restructure and settle each of the three hospitals’ financial obligations, which is the logical next step to address historical challenges while positioning each hospital’s operations for the future.”

The planned Tri-County Regional Health System will offer the communities healthcare services that are currently unavailable within the Tri-County Region. Along with the construction of a new general acute care hospital, HMP and Dobbs will create three new multi-specialty ambulatory primary care centers located in Barnwell, Bamberg and Allendale. Each of these facilities will be staffed by a multi-specialty group practice.

HMP and Dobbs also plan to work closely with local EMS/ambulance providers and government agencies to fully utilize a modern and integrated medical transportation system.

Over the next several weeks Mr. Morgan and members of his team will be meeting with key constituencies from each hospital to further explain the Chapter 9 restructuring process and how it may affect different constituent groups.