Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Bankrupt Miami hospital will be sold in auction

The Miami Medical Center filed for Chapter 11 bankruptcy protection in March, and the 67-bed hospital is slated to be sold in auction in late June.

Leawood, Kan.-based Nueterra, along with its partners, acquired Miami Medical Center in 2014 and invested $70 million in the facility. Children's Health Ventures, the for-profit arm of Miami-based Nicklaus Children's Hospital, invested in Miami Medical Center with hopes of bringing a unique care model to South Florida. However, the Miami Medical Center struggled to stay afloat.

The hospital suspended patient services Oct. 30, 2017, and subsequently laid off its 180 employees. It filed for bankruptcy protection March 9, 2018.

On March 30, Miami Medical Center filed a motion to approve bidding procedures for the sale of the hospital and to approve certain protections to the stalking horse purchaser Nicklaus Children's Hospital. The general unsecured creditors' committee and a group of physicians objected to the proposed bidding procedures and the ability of Nicklaus Children's Hospital to credit the amount of its liens on Miami Medical Center.

However, to avoid expense, delay and uncertainty of litigation, the parties subsequently resolved the objections from the unsecured creditors committee. "The resolution of the debtor's bankruptcy case as soon as practicable will materially reduce the burdens on the debtor's estate for the benefit of all parties-in-interest," Miami Medical Center stated in its motion for approval of compromise and settlement filed May 18.

On May 21, U.S. Bankruptcy Judge Laurel M. Isicoff granted the motion, according to Law360. The hospital is now set to be sold in auction during the week of June 18.

More articles on healthcare industry transactions:

HCA, private equity firm join forces to make bid for Envision
For-profit hospital operator M&A update: 13 latest deals involving CHS, Tenet, HCA and LifePoint
Northwestern, Centegra seek to finalize 10-hospital merger

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars