University Physician Group, which does business as Wayne State University Physician Group, has paid off its unsecured creditors, the final step in the group's exit from bankruptcy, according to Crain's Detroit Business.
"I am pleased to report that WSUPG successfully completed the final milestone on our Chapter 11 journey on Oct. 11," Charles Shanley, MD, the group's CEO, said in an email to physicians obtained by Crain's. "We (paid) our creditors ... completing all of the requirements for emergence in just under a year, and only four months after confirmation of our reorganization plan. This is truly a remarkable achievement."
Wayne State University Physician Group filed for Chapter 11 bankruptcy Nov. 7 amid financial issues attributed to declines in operational and revenue cycle performance. Seven months later, on June 3, the U.S. Bankruptcy Court in Detroit approved the 301-physician group's reorganization plan as well as its emergence from bankruptcy.
As part of the reorganization plan, the physician group paid final unsecured creditors last week with 272 checks worth $8 million, according to Crain's. The newspaper reported that after writing the checks, the group has decreased long-term debt by more than 80 percent, reduced annualized expenses by 22 percent and cut overhead expenses by 27 percent.
Read the full Crain's report here.
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