TMA Talks

This is the first in an occasional series of roundtable discussions by Certified Turnaround Professionals (CTPs) on issues impacting the turnaround, restructuring, and distressed investing industry. In this installment, Ruediger (Rudi) Mueller, CTP; Robert D. Katz, CTP; and Edward J. Sanz, CTP, discuss some of the problems facing distressed hospitals. Mueller moderated the discussion.

Founded in 1913, Tuomey is a "sole community provider" general acute care hospital in rural South Carolina. So rural that the closest hospitals providing comparable care are a one-hour drive away. Tuomey's financial stability began to deteriorate in 2007, when the qui tam complaint in United States ex rel. Drakeford v. Tuomey ("Drakeford") was unsealed.

The Drakeford judgment, together with continuing cash operating losses from Tuomey's operations, left Tuomey insolvent. Further, Tuomey lost its long-standing senior officers and outside law firm due to DOJ demands during settlement negotiations. On top of causing insolvency and a leadership vacuum, the Drakeford judgment effectively gave the DOJ the ability to shut Tuomey down by excluding it from the Medicare program.

In this 15-minute podcast, hear from key players in the Tuomey Transaction on how they overcame these challenges to bring Tuomey out of insolvency. 

Podcast Participants: 

Jody A. Bedenbaugh, Nelson Mullins Riley & Scarborough LLP

George B. Cauthen, Nelson Mullins Riley & Scarborough LLP

Mark M. Gilbreth, formerly of Deloitte Transactions and Business Analytics LLP

Alice V. Harris, Nelson Mullins Riley & Scarborough LLP

Thomas F. Moran, Nelson Mullins Riley & Scarborough LLP

Louis E. Robichaux IV, CTP, Deloitte Transactions and Business Analytics LLP

Michael J. Schwartz, formerly of FTI Consulting, Inc.

Jenny F. Shealy, Nelson Mullins Riley & Scarborough LLP

Founded in 1913, Tuomey is a "sole community provider" general acute care hospital in rural South Carolina. So rural that the closest hospitals providing comparable care are a one-hour drive away. Tuomey's financial stability began to deteriorate in 2007, when the qui tam complaint in United States ex rel. Drakeford v. Tuomey ("Drakeford") was unsealed.

The Drakeford judgment, together with continuing cash operating losses from Tuomey's operations, left Tuomey insolvent. Further, Tuomey lost its long-standing senior officers and outside law firm due to DOJ demands during settlement negotiations. On top of causing insolvency and a leadership vacuum, the Drakeford judgment effectively gave the DOJ the ability to shut Tuomey down by excluding it from the Medicare program.

In this 15-minute podcast, hear from key players in the Tuomey Transaction on how they overcame these challenges to bring Tuomey out of insolvency. 

Podcast Participants: 

Jody A. Bedenbaugh, Nelson Mullins Riley & Scarborough LLP

George B. Cauthen, Nelson Mullins Riley & Scarborough LLP

Mark M. Gilbreth, formerly of Deloitte Transactions and Business Analytics LLP

Alice V. Harris, Nelson Mullins Riley & Scarborough LLP

Thomas F. Moran, Nelson Mullins Riley & Scarborough LLP

Louis E. Robichaux IV, CTP, Deloitte Transactions and Business Analytics LLP

Michael J. Schwartz, formerly of FTI Consulting, Inc.

Jenny F. Shealy, Nelson Mullins Riley & Scarborough LLP