Morehead Memorial Hospital

• 7/10/17 Recap: North Carolina non-profit 108-bed general acute care community hospital and owner of a 121-bed skilled nursing facility filed for bankruptcy. The healthcare provider noted the following reasons for the bankruptcy filing: (i) decreased patient volume, net revenue and free cash flow due, in large part, to the delivery of medical services occurring increasingly in ambulatory and emergency room settings; (ii) low reimbursement rates for medical services; (iii) expensive and only partially-reimbursed service in fulfillment of its non-profit mission; (iv) rising costs and increased competition (including competition for physicians given the hospital's rural nature); and (v) debt and legacy pension liability. The hospital will use the bankruptcy period to undertake both an operational and balance sheet restructuring while contemporaneously seeking a potential strategic healthcare provider partner. 
• Jurisdiction: M.D. of North Carolina (Judge Kahn)
• Capital Structure: $34mm debt     
• Company Professionals:
  • Legal: Waldrep LLP (Thomas Waldrep Jr., Jennifer Lyday, Francisco Morales)
  • Financial Advisor: Grant Thornton LLP (Scott B. Davis)
  • Investment Banker: Hanlon Hammond Camp LLC (Michael Lane)
  • Claims Agent: Donlin Recano & Company Inc. (*click on company name above for free docket access)

Updated 7/13/17 6:36pm CT