Receiver of Healthcare Businesses in Partnership Dispute
Dispute Resolution, Cash Flow Management, Interim Management, Asset Disposition
The Bottom Line:
As receiver of three related healthcare entities at the center of a heated partnership dispute – a surgery center, a medical office building and a personnel company – Stapleton Group profitably managed the businesses while crafting, mediating and implementing a settlement between the two feuding surgeon-owners and their lawyers.
The partners were fighting over issues including financial management, cash distributions, personal expenses, surgery center access (one surgeon locked out the other surgeon) and tenant leasing. After failing to resolve their disagreements, one partner initiated a court case and sought appointment of a receiver. Stapleton’s win-win solution included:
- Thorough forensic accounting to determine the amounts and legitimacy of partner distributions and expense reimbursements, then defining a “true-up” amount for past financial inequities.
- Clarifying medical billing procedures by entity to ensure fair economics for the partners.
- Reorganizing ownership of the surgery center.
- Selling the medical office building for the benefit of both partners (in-process).
- Dissolving the personnel company.
- One surgeon remained in the office building while the other relocated his practice.
Obstacles & Stapleton’s Solutions
- One surgeon took multiple unapproved distributions of the majority of the surgery center’s cash.
- Stapleton inspected historical banking transactions for the businesses, including distributions to business partners and the legitimacy of expenses.
- Stapleton calculated, and got the surgeons to agree to, a “true-up” amount and stipulated it to the court.
- The surgeons attempted billing procedures to bypass income-sharing, including one surgeon “locking out” his partner from using the surgery center.
- Stapleton managed billing and collections of medical receivables through an on-site healthcare administrator, thereby ensuring they were properly billed.
- Extreme ill-will between the partners complicated their agreeing to a partnership dissolution.
- Stapleton prepared an independent accounting to facilitate a settlement.
- Stapleton controlled bank accounts and all cash activity to prevent further disputes while continuing to operate the businesses, generating income for the partners, during receivership.
- Stapleton mediated and settled daily disputes between the partners.
- Stapleton led mediation between the partners, resulting in the successful separation of the assets (sale of building) and businesses.
- The businesses remained operating, serving patients throughout the receivership.
- Stapleton managed the businesses’ healthcare administrator, overseeing and reviewing medical billing, narcotics/controlled substances and HIPAA practices.
- Stapleton reviewed accounts receivable and managed pursuit of outstanding claims to optimize cash flow.
- Stapleton oversaw staffing and managed payroll.