NORTHWEST FAMILY HOSPITAL

Case Highlights

• Negotiated with the city for transfer of facility in exchange for reduced claim against the estate
• Managed extensive Medicaid collections and government claims

Case Narrative

Bill Brandt was the Chapter 7 Trustee for this approximately 200-bed hospital located in Gary, Indiana.  The patients generally lacked private insurance and were unable personally to pay for services rendered.  DSI worked closely with the appropriate state agencies to complete the documents required for reimbursement to the estate of all Medicaid and other  payments due.  DSI was instrumental in the orderly wind down of the facility, including the transfer and preservation of medical records and the proper disposal of all confidential items.  In an innovative approach, DSI negotiated with government officials and ultimately compromised a multi-million dollar claim with the City of Gary, Indiana.  The City agreed to accept the hospital building in exchange for a full release of its pre- and post-petition real estate taxes (approximately $4 million).  This settlement materially reduced the claims pool and thus increased the expected distribution to creditors.  The agreement also served to promote the social good in Gary.  The building was later renovated and turned into a police station/community service building.