LBO hospital

If a New York hospital were to go bankrupt – note that most run in the red – would it make sense for another hospital to employ the LBO approach to acquire the assets? It would be good to do some research to see which hospitals actually went bankrupt in New York and what happened to them.

 

I would like to talk about Peninsula Hospital. On 2011 July 24, Peninsula, one of two hospitals serving Far Rockaway, Queens, was set to close.

The peninsula managers made a decision to save their hospital and nursing home while the bankruptcy was a process of the whole transaction. The way of saving their business was to be supported by an affiliate of Revival Home Health Care. They provided $8 million for the hospital.

LBO is kind of going private transaction so I’m not sure this case would be matched with. In my opinion, LBO is huge transaction and companies often borrow money from back as “LBO Loan” but in this case, it’s just 8 million (Lately Dell was acquired and provide 200 billion by the owners and banks) And it must be restricted by SPC (Special Purpose Company). I don’t think whole bankruptcy needs LBO like this case. In case of HCA, it was supposed to be largest hospital buyout but it didn’t even happen.