💥 New Chapter 11 Bankruptcy Filing: Hospital for Special Surgery LLC 💥
Software, not the pandemic, does in radiology and orthopedic care provider.
On October 7, 2024, The Hospital for Special Surgery LLC dba OneCore Health (the “debtor”) filed a chapter 11 bankruptcy case in the Western District of Oklahoma (Judge Loyd). Based in Oklahoma City, the debtor specializes in radiology and orthopedic care and has won “accolades” for knee replacement and spinal fusion surgery, according to the first-day declaration of CRO Carrie McEntire of McEntire Advisory LLC.
We know what you’re thinking. Here we go again with that pesky pandemic. Well, take solace y’all, the pandemic merely gets passing mention from McEntire. What did do the debtor in, interestingly, was the implementation of a new billing system that went terribly, horribly wrong. “OneCore struggled with calibrating the software, creating appropriate interfaces and then billing/collecting claims.” Whoops! They literally f*cked up doing the ONE THING every business needs to make sure of: that is, getting paid. This went on for two years — ⚡️two years!⚡️ — with the debtor losing “several million dollars” in revenue as a consequence.
The debtor “began to regain control over the billing cycle” in early ‘24. Profitability was starting to loom on the horizon. But in early September, a former patient obtained a judgment of $15mm against the hospital related to care provided by a physician in ‘21. Okay, fine, they had more to do other than just getting paid. Like, uh, actually providing good medical care, lol. The $15mm exceeds the enterprise value of the hospital, McEntire writes. “OneCore has appealed the judgment but was required to initiate this Chapter 11 Case to continue to operate its business, continue to employ its approximately 100 employees, and to maintain the enterprise value of Debtor’s assets until a sale pursuant to section 363 of the Bankruptcy Code can be conducted.”
Luckily, the debtor doesn’t have a huge debt hurdle to clear; its indebtedness consists of $765k under a credit facility with BOKF NA d/b/a Bank of Oklahoma (“BOKF”). The debtors seek use of cash collateral and propose the usual adequate protection to BOKF.
The debtors are represented by Crowe and Dunlevy PC (William H. Hoch, Craig M. Regens, Mark A. Craige, Kaleigh M. Ewing) as legal counsel and McEntire Advisory LLC (Carrie McEntire) as financial advisor.
Company Professionals:
Legal: Crowe and Dunlevy PC (William H. Hoch, Craig M. Regens, Mark A. Craige, Kaleigh M. Ewing)
Financial Advisor: McEntire Advisory LLC (Carrie McEntire)
Claims Agent: Verita (Click here for free access)