Hawaii Medical Center

Division: Phoenix Management Services


Hawaii Medical Center is a multi-site hospital system of 410 licensed beds representing $170M net revenues and 850 FTEs had experienced revenue declines and overall operating performance shortfalls and as a result, sought protection in the Bankruptcy Courts.


Siemens Financial, the Bank, was concerned and required a deeper understanding of the inherent risks of its existing secured collateral position and an evaluation of the potential of management’s reorganization plan for the Company as it sought to emerge from Chapter 11 proceedings.


Phoenix completed a detailed, onsite financial and operational review of the Company’s operating facilities. During its assignment Phoenix completed an evaluation of current business plans and in-depth senior management interviews, which resulted in identification of specific initiatives relating to revenue cycle management, labor/non-labor expense and patient volume and care management. Ultimately, Phoenix established that the Company’s operations supported the secured position of the Bank’s existing debt, as well as supporting a possible extension of Debtor In Possession (“DIP”) credit facility terms during the Bankruptcy process. Further, the Bank was able to better understand the likelihood of the Company’s emergence from Bankruptcy, under what capital structure and anticipated operating performance and working capital requirements.