Doctors Hospital of Michigan in Pontiac is being reborn after filing for bankruptcy last July, according to a Crain's Detroit Business report.
The physician-owned hospital filed for chapter 11 bankruptcy protection after struggling financially for years. Doctors' Hospital listed debts between $10 million and $50 million in its bankruptcy petition.
Now, U.S. Bankruptcy CourtJudge Walter Shapero has approved a reorganization plan by Sant Partners, which provided $1.5 million in debtor-in-possession financing to the hospital in 2015, according to the report. Sant Partner's plan was approved over two competing groups, Save the Hospital Group, which includes two physicians, and Allied Global Consulting.
Under the reorganization plan, Sant Partners will take over the hospital through essentially writing off its earlier $1.5 million loan and assuming the hospital's liabilities and $13 million in debt, according to Crain's Detroit Business.
Sant Partners, founded by Sanyam Sharma, executive vice president of Infrahealth Group, an Austin, Texas-based healthcare administrative services firm, is set to take ownership of the hospital in mid-April, and is currently considered by the court as the debtor-in-possession.
With the official takeover by Sant Partners approaching, changes are being made at Doctors Hospital. It has a new leadership team and has reverted back to a previous name, Pontiac General Hospital.
Sanjay Sharma is now the hospital's CIO and president of the medical school. Priyam Sharma will become one of the hospital's four board members, along with his son, Sanjay Sharma, and the two other board members will be Jawad Shah, MD, and Surindar Jolly, MD, according to the report. Dr. Shah, who plans to invest $375,000 in the hospital, is the hospital's CMO, while Dr. Jolly has committed up to $500,000, the report states.
Priyam Sharma told Crain's Detroit Business Sant Partners doesn't want to make layoffs, and has "been shifting people around based on their skills."
Furthermore, Sanyam Sharma told the publication his family has no plans to sell the hospital. Additionally, the Sharma family wants to expand inpatient medical-surgical services offered at the hospital, according to the report.
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