Quarterly Dialogue (Third Quarter 2011)
-
Edward R. Casas
Senior Managing Director847.583.1619 -
Kim J. Brady
Managing Director847.583.1718 -
Gregory F. Hagood
Managing Director404.504.2017 -
Michael Lane
Managing Director312.583.2132 -
Neil F. Luria
Managing Director216.321.5606
Healthcare
Now is a good time for healthcare companies and their sponsors to evaluate strategic opportunities. Our professionals have extensive experience in restructuring advisory and distressed asset sales, as well as buy-side and sell-side transactions in the healthcare sector. Should you be facing challenges during these difficult times, turn to Navigant Capital Advisors for confidential consultation.
To learn about our Healthcare Solutions Team, click here.
We work with many clients in the Healthcare industry. Representative engagements include:
Providers
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation is a publicly traded (NASDAQ:MDTH), $600 million in revenues, national healthcare provider focusing on high-acuity services and specializing in the diagnosis and treatment of cardiovascular disease. NCA was engaged as exclusive financial advisor to evaluate potential strategic alternatives, including a sale of the company, either through the sale of its equity, assets and/or ownership interests in associated ventures. As financial advisor, responsibilities include: (i) positioning the Company and its hospitals for sale; (ii) identification and solicitation of potential acquirers; and, (iii) negotiation of terms of any definitive purchase agreement. To date, more than 10 healthcare facilities have been sold to various buyers, at a total value of over $500 million.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold substantially all the assets of Heart Hospital of Austin to St. David's Healthcare Partnership, L.P. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring & Investment Banking
- Industry
Healthcare
Sumner Regional Health Systems (SRHS) is a four-hospital healthcare organization serving eleven counties in Tennessee. Due to excessive leverage from past bond issuances in 2007 and 2008 and recurring poor operating performance, NCA was retained as financial advisor in connection with exploring strategic alternatives. Our professionals also served as interim manager and drove over $18 million in year over year annualized EBIDA enhancements. As strategic alternative and asset disposition advisor, NCA positioned SRHS to maximize results in pursuit of strategic alternatives, initiating and leading a competitive marketing process resulting in numerous offers negotiated with a wide array of national and regionally-focused hospital companies. A transaction with LifePoint Hospitals valued at approximately $156 million was consummated pursuant to Section 363 under Chapter 11 of the U.S. Bankruptcy Code, resulting in complete recovery by secured and unsecured creditors.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Twin City Hospital is a 25-bed, not-for-profit 501(c)3, critical access hospital located in Dennison, Ohio. NCA was engaged by Twin City Hospital to act as financial advisor in connection with exploring strategic alternatives including the sale of the hospital. Our professionals initiated and led a competitive marketing process that resulted in the sale of Twin City Hospital to Franciscan Services Corp. pursuant to Section 363 under Chapter 11 of the U.S. Bankruptcy Code.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Morton Hospital and Medical Center is a 154-bed acute care hospital offering a full spectrum of medical and surgical services located in Taunton, MA, approximately 40 miles south of Boston. NCA was engaged to act as financial advisor in connection with exploring strategic alternatives, including identifying a capital or affiliation partner. Navigant professionals initiated and led a successful sales solicitation process. Subsequently, Morton entered into an Asset Purchase Agreement with Steward Health Care System whereby Steward agreed to acquire the hospital for assumption of indebtedness, cash, and capital commitments. All outstanding obligations to creditors were satisfied in the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold substantially all the assets of Hualapai Mountain Medical Center in Kingman, Ariz., to Kingman Regional Medical Center (KRMC). Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its ownership interest and management rights in Arkansas Heart Hospital to AR-MED, LLC., which is majority owned by Dr. Bruce Murphy, a physician affiliated with Little Rock Cardiology Clinic, P.A., and a current investor in the Arkansas Heart Hospital. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Caritas Christi Health System is a non-profit multi-hospital system in New England, primarily engaged in owning and operating acute care hospitals. The System has over $1.0 billion in net patient revenue. In connection with a proposed sale to a for-profit investor, NCA was engaged by Caritas Christi as financial advisor to review the terms and conditions of the transaction and issue a fairness opinion. Initially contributed to a strategic planning engagement including a strategic review and assessment of the System on behalf of the Archdiocese of Boston. Caritas Christi was successfully sold to Steward Health Care System LLC.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Quincy Medical Center (QMC) is a private, non-profit acute care community hospital located in Quincy, MA with 196 licensed beds and a medical staff that includes over 340 physicians. NCA was engaged by QMC to provide strategic alternative and restructuring support services including: (i) managing a competitive process to identify strategic alternatives including the sale of the hospital and other non-core assets; (ii) negotiating with QMC's bondholders and other creditors regarding financial restructuring matters; and, (iii) assisting in other capital restructuring related matters. Our professionals initiated and led a competitive marketing process that resulted in QMC entering into an Asset Purchase Agreement with Steward Health Care System pursuant to Section 363 under Chapter 11 of the U.S. Bankruptcy Code.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Tomball Regional Medical Center (TRMC) operates as a comprehensive acute care health system serving the greater northwest Houston, Texas market with 358 licensed beds and a medical staff that includes approximately 360 physicians. NCA was engaged by TRMC to provide strategic alternative, performance improvement and restructuring support services including: (i) managing a competitive process to identify strategic alternatives including the sale of the hospital and other non-core assets; and, (ii) negotiating with TRMC's bondholders and other creditors regarding capital structure matters. TRMC achieved over $10 million in annualized EBIDA run rate improvement, and after conducting a competitive solicitation process entered into an asset purchase agreement with Community Health Systems, Inc. (NYSE: CYH).
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Sumner Regional Health Systems (SRHS) is a four-hospital healthcare organization (including Riverview Regional Medical Center) serving eleven counties in Tennessee. Due to excessive leverage from past bond issuances in 2007 and 2008 and recurring poor operating performance, NCA was retained as financial advisor in connection with exploring strategic alternatives. Our professionals also served as interim manager and drove over $18 million in year over year annualized EBIDA enhancements. As strategic alternative and asset disposition advisor, NCA positioned SRHS to maximize results in pursuit of strategic alternatives, initiating and leading a competitive marketing process resulting in numerous offers negotiated with a wide array of national and regionally-focused hospital companies. A transaction with LifePoint Hospitals valued at approximately $156 million was consummated pursuant to Section 363 under Chapter 11 of the U.S. Bankruptcy Code, resulting in complete recovery by secured and unsecured creditors.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its ownership interest and management agreement in Coastal Carolina Heart to New Hanover Regional Medical Center (Wilmington, North Carolina). Coastal Carolina Heart is a component of the Company's MedCath Partners division and provides certain catheterization laboratory management services to New Hanover Regional Medical Center. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its interest in Avera Heart Hospital of South Dakota to Avera McKennan. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold the majority of the assets of its MedCath Partners division to DLP Healthcare, a joint venture of LifePoint Hospitals and Duke University Health System. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its interest in Louisiana Medical Center & Heart Hospital to Cardiovascular Care Group (CCG). Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold substantially all the assets of TexSan Heart Hospital, owned by MedCath and its physician investors, to Methodist Healthcare System of San Antonio. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its minority ownership in Southwest Arizona Heart and Vascular Center, LLC. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
Sumner Regional Health Systems (SRHS) is a four-hospital healthcare organization (including Trousdale Medical Center) serving eleven counties in Tennessee. Due to excessive leverage from past bond issuances in 2007 and 2008 and recurring poor operating performance, NCA was retained as financial advisor in connection with exploring strategic alternatives. Our professionals also served as interim manager and drove over $18 million in year over year annualized EBIDA enhancements. As strategic alternative and asset disposition advisor, NCA positioned SRHS to maximize results in pursuit of strategic alternatives, initiating and leading a competitive marketing process resulting in numerous offers negotiated with a wide array of national and regionally-focused hospital companies. A transaction with LifePoint Hospitals valued at approximately $156 million was consummated pursuant to Section 363 under Chapter 11 of the U.S. Bankruptcy Code, resulting in complete recovery by secured and unsecured creditors.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold its interest in Arizona Heart Hospital to Vanguard Health Systems. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare
MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, sold substantially all the assets of Heart Hospital of New Mexico to Lovelace Health System, Inc., which is an affiliate of Ardent Health Services, based in Nashville, Tenn. Navigant Capital Advisors, retained by MedCath to provide advisory services relative to the assessment of MedCath's strategic alternatives, provided advisory services on the transaction.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare
FORBA Holdings is the nation's premiere dental practice management company focused on dental care for underserved communities. The company manages 69 dental centers in 22 states and provides dental care to Medicaid/SCHIP eligible children. On behalf of the Company, NCA led capital restructuring negotiations with major financial institutions to amend its credit agreement as well as convert a portion of sub debt into common equity.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare
NCA was engaged by a real estate private equity fund in connection with the restructuring of its majority ownership interests in a JV partnership that owns Sunrise Senior Living, consisting of 16 senior living communities in 11 states, known as Fountains Senior Living Holdings, LLC. On behalf of the fund, NCA led negotiations with the joint venture partner, their representatives, and major financial institutions in connection with transferring minority interest to the fund, replacing the property manager, and amending credit agreements.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare - Providers
The Atlanta Cardiology Group, PC (ACG) is one of the largest groups of cardiologists in Georgia and offers the full range of cardiovascular services. ACG was acquired by Piedmont Healthcare, Inc. Navigant Capital Advisors, LLC served as the exclusive financial advisor to ACG.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Providers
Brotman Medical Center (“BMC”), in Culver City, CA is a $100 million revenue for-profit acute care hospital system that operates a total of 420 licensed beds which includes a psychiatric unit and detox unit. BMC experienced significant losses in 2006 and 2007 and was in technical default on its long-term debt. NCA was retained as financial advisor and asked to provide guidance to the Board and administration on the identification and implementation of turnaround opportunities, in addition to assessing and improving the finance department. NCA conducted an operational and financial assessment of the organization and included placement of the CRO and interim CFO positions with NCA personnel. The Hospital filed for bankruptcy in October 2007, with an NCA professional assuming the role of interim CEO during the initial stages of the bankruptcy proceedings. The management team, led by the interim CEO and CFO, successfully implemented financial and operational improvement initiatives that resulted in significant savings through productivity improvement and other cost initiatives. The hospital is expected to emerge from Chapter 11 early in the fourth quarter of 2008.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Providers
New Island Hospital (“NIH”) is a single facility, 150 bed (223 authorized) community hospital servicing Bethpage, NY and the surrounding communities. NCA developed, negotiated and implemented a successful out-of-court restructuring in which NIH’s outstanding bonds were defeased, NIH’s capital structure was restructured resulting in a complete waiver of over 40% of the existing credit obligations and a change of control over the governance of the hospital.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Providers
PBI Regional Medical Center (“PBI”) is a 200 bed non-profit community hospital in Passaic, NJ. NCA and NCI’s healthcare consultants were jointly retained to assist in preparation of a performance improvement and capital restructuring plan. In connection with the restructuring process, NCA professionals served as Chief Restructuring Officer, interim CEO, interim COO, and interim CFO. The financial restructuring was accomplished through a Chapter 11 bankruptcy filing in which the assets of PBI were successfully sold pursuant to a Section 363 auction to St. Mary’s Hospital of Passaic. As a result of the bankruptcy sale, PBI’s senior secured lenders received a 100% recovery.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Providers
Westchester Medical Center (“WMC”) is a health care network consisting of a 600 bed tertiary care facility, a 200 bed nursing home, and 60 outpatient clinics with revenues of $550 million. NCA professionals assisted WMC with the development of a capital and operating restructuring plan, obtaining a $30 million capital infusion, the sale of an outpatient imaging center, the spin-off of a clinic supporting developmentally disabled patients, renegotiation of an affiliation agreement with a local medical college, a general reduction in force, and the outsourcing of various service offerings.
- Practice Area
Other
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare - Other
Coalition America, Inc. (“Coalition” or “CAI”), a market leader providing comprehensive solutions for managing healthcare costs, acquired National Preferred Provider Network (NPPN) from MedAvant Healthcare Solutions (NASDAQ: PILL) for approximately $23.5 million in cash. Navigant Capital Advisors, LLC (“NCA”) acted as exclusive financial advisor to Coalition in the transaction. The transaction included the sale of PlanVista Solutions, Inc., National Network Services, LLC, PlanVista Corporation, Medical Resource, LLC and National Provider Network, Inc., all of which are MedAvant subsidiaries that combine to comprise NPPN. CAI utilizes a suite of products and services including direct provider contracts, PPO networks and provider negotiations to achieve industry leading savings for its national client base of health insurance carriers, employers, Taft Hartley plans and third party administrators. The Atlanta-based healthcare savings company has saved its clients over $1.5 billion since inception.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare - Other
Extend Health, Inc. provides employer-sponsored health care insurance services for active or retired employees. Extend Health received $15 million in its series B round of funding led by new investor Psilos Group Managers, LLC. The round included participation from existing investor Revolution Health Group. Navigant Capital Advisors, LLC served as the exclusive placement agent and financial advisor to Extend Health.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare - Other
HP3, Inc., a healthcare consulting firm, engages in the development and distribution of healthcare educational products designed to improve the reimbursement process for healthcare providers in the United States. Navigant Capital Advisors, LLC was the financial advisor to HP3, Inc. in its sale to Navigant Consulting, Inc. for reported consideration of $19 million, including accounts receivables. Revenues and pro forma EBITDA for the last 12 months approximated $19 million and $2.7 million, respectively.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Other
Mediq Incorporated is the nation’s leading provider of moveable medical equipment on a daily rental basis to individual and institutional consumers. NCA professionals represented Mediq’s secured creditors in a successful Chapter 11 reorganization pursuant to which such lenders equatized their debt to take control of the Company. Upon engagement, NCA professionals undertook a review of the Mediq’s financial and operating performance and then developed and negotiated the reorganization plan on behalf of its client. Post-bankruptcy, an NCA professional served as Executive Chairman of the Mediq Board and oversaw the continuing operating restructuring focused on branch rationalization, overhead reductions, and renegotiation of key vendor and franchisee relationships. The operating restructuring led by NCA professionals increased EBITDA from $45 million to $60 million over a 12 month period. NCA professionals were also retained as as the company’s sell side advisor and negotiated the sale of Mediq to Hill-Rom, Inc. (a division of Hillenbrand) as well as the sale of ACS (a division of Mediq) to Invacare Corporation. The sale resulted in a full recovery to the pre-petition holders of the “fulcrum” bankruptcy claims.
- Practice Area
-
Close
Representative Engagement- Practice Area
Restructuring
- Industry
Healthcare - Other
TLC Health Care Services, Inc. (“TLC”) is a provider of home nursing and hospice services with 92 home health and 11 hospice agencies located in 22 states and the District of Columbia. TLC’s licensed healthcare professionals provide a wide range of skilled nursing services including disease management, cardiac care, behavioral healthcare, and patient and family healthcare counseling. NCA was retained by TLC’s equity holders to assist in an ongoing financial and operating restructuring. Following NCA’s successful renegotiation of a consensual debt restructuring, NCA professionals oversaw an in-depth operating restructuring. The results of the operational improvement plan implemented by NCA resulted in a significant increase of the Company’s EBITDA from $24.0 million to $38.0 million over a 12-month period.
- Practice Area
-
Close
Representative Engagement- Practice Area
Investment Banking
- Industry
Healthcare - Other
TLC Health Care Services, Inc. (“TLC”) is a provider of home nursing and hospice services with 92 home health and 11 hospice agencies located in 22 states and the District of Columbia. TLC’s licensed healthcare professionals provide a wide range of skilled nursing services including disease management, cardiac care, behavioral healthcare, and patient and family healthcare counseling. Amedisys, Inc. (NASDAQ:AMED), one of America’s leading home nursing companies acquired TLC Health Care Services, Inc. for $395.0 million in cash.
Navigant Capital Advisors, LLC (“NCA”) was originally engaged as TLC’s exclusive financial advisor to provide capital and operating restructuring. Subsequently, NCA was retained to provide sell-side advisory services and successfully structured, negotiated and closed this transaction.
- Practice Area
Securities offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.
www.finra.org www.sipc.org
Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.
Click here for a complete listing of private investigator licenses.








