WASHINGTON, DC—Specialty Hospitals of America LLC reports it will file for Chapter 11 bankruptcy protection and then sell both its Capitol Hill and Hadley long-term acute care hospitals here.
Greenwich, CT-based Silver Point Capital has agreed to acquire Specialty's Capitol Hill and Hadley campuses for an undisclosed price. Silver Point will provide Specialty subsidiary Specialty Hospital of Washington $15 million to continue operations as the bankruptcy supervised sale of its assets proceeds, according to the Washington Business Journal. A bankruptcy court hearing is scheduled for today. The Capitol Hill campus is located at 700 Constitution Ave. provides 60 beds for extended stay critical care patients and 120 nursing center beds. The Hadley campus at 4601 Martin Luther King Jr. Avenue S.W. provides 82 extended stay critical care beds and 60 nursing center beds
In a press release Specialty Hospitals of America stated the loan and sale agreements marked the culmination of a four-month strategic process conducted by Specialty Hospitals of America's Board of Directors and senior management, with the assistance of independent advisors, to put Specialty Hospitals of America (SHA) in a financially viable position.
In the announcement, Specialty Hospital said that it is proposing to the court to have the sales process completed in approximately 90 days.
“Our new financial agreements are a lifeline for saving a vital regional healthcare resource and averting the immediate and ongoing healthcare crisis that would ensue in the greater Washington, DC metropolitan area if SHA's facilities were forced to close,” states SHA's President and Chief Operating Officer Frank Wilich. “Licensed long-term acute care facilities occupy a critical position in any region's continuum of care, allowing hospitals both to discharge patients more frequently and admit new patients more frequently. There are no other licensed long-term acute care facilities in the metropolitan area.”
Specialty Hospitals of America is headquartered in Portsmouth, NH. The two DC hospitals employ more than 750 workers. See story in the Washington Business Journal.
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