Saint Vincent Catholic Medical Centers (Saint Vincent's) announced today that the US Bankruptcy Court for the Southern District of New York confirmed its Chapter 11 Plan of Reorganization (the Plan). Saint Vincent's expects that the Plan will go effective by Labor Day.
"This is an extremely exciting day for Saint Vincent's. The Plan reflects the culmination of more than two years of effort to create a strong, financially viable healthcare institution, focused on a bright future with many opportunities. We appreciate the support we received throughout the chapter 11 from so many parties, and we are very pleased that our pre-petition unsecured creditors and pre-petition medical malpractice creditors voted overwhelming in support of the Plan," said Martin McGahan, Chief Restructuring Officer of Saint Vincent's and Managing Director of Alvarez & Marsal.During its chapter 11, Saint Vincent's undertook a significant restructuring by divesting or closing acute care facilities that were experiencing large operating losses, renegotiating managed care contracts to reflect more equitable reimbursement for the services provided, and renegotiating other service contracts for more favorable terms, among other actions.
"Saint Vincent's is grateful to our physicians, nurses, and employees who demonstrated unparalleled support and commitment throughout the bankruptcy process," stated Alfred E. Smith, IV, Board Chairman of Saint Vincent's. "As a result of their accomplishments during our reorganization, Saint Vincent's looks forward to delivering our mission of care and service as a stronger revitalized health system.
GE Healthcare Financial Services, which had been its debtor-in-possession lender, will increase its commitment to Saint Vincent's by extending it exit financing in the amount of a $320 million credit facility.
As a key commitment to employees and retirees, the Plan includes the continuation of Saint Vincent's pension plan, keeping benefits in place for current employees and retirees.
In planning for the future, the new Saint Vincent's is re-committed to serving the healthcare needs of the West Side and Downtown by building a new state-of-art medical center across from its current location in Greenwich Village.
"We are very excited about constructing the new hospital, it will be the first all digital hospital in New York City built from the ground-up and the first in the City to employ green building technologies throughout," explained Mr. Smith.
Saint Vincent's has begun working with elected officials, community organizations, block associations and various leaders on its plan and to seek their input.
The "new" Saint Vincent's looks forward to continuing to provide high quality medical, behavioral health, and continuing care to our patients and communities.
The reorganized Saint Vincent's will be focused on a core health care mission, anchored by St. Vincent's Hospital Manhattan and St. Vincent's Hospital Westchester, skilled nursing facilities in Brooklyn and Staten Island, behavioral health and home care services throughout the Metropolitan area, and sponsorship of the US Family Health Plan under contract with the Department of Defense.
Saint Vincent's serves as the academic medical center of New York Medical College in New York City. The healthcare organization is sponsored by the Roman Catholic Bishop of Brooklyn and the president of the Sisters of Charity of New York.
